Company: IXHL
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001213900-25-036057
Chunk: 56

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 56
---
 the cost of selling their shares and greater difficulty effecting sales. If we effect the Reverse Stock Split, the resulting per -sharestock price may nevertheless fail to attract institutional investors and may not satisfy the investing guidelines of such investors and, consequently, the trading liquidity of our common stock may not improve. In addition, the Reverse Stock Split may result in adjustment to the exercise price (down to as low as the Floor Price of $0.216) and number of shares underlying the Series A Warrants (from 11,574,090 to up to 115,740,900, assuming full adjustment of the exercise price to the Floor Price and before giving effect to the zero exercise price provision) as discussed below under the heading “— Effect of The Reverse Stock Split”. Assuming full adjustment of the exercise price to the Floor Price, the aggregate number of shares of common stock issuable upon the exercise of all of the Series A Warrants pursuant to the zero exercise price provisions therein would be 347,222,700. Effect of the Reverse Stock Split If our stockholders approve the Reverse Stock Split and our board of directors elects to effect the Reverse Stock Split, we would adjust and proportionately decrease the number of shares of our common stock reserved for issuance upon exercise of, and adjust and proportionately increase the exercise price of, options and warrants and other rights to acquire our common stock. In addition, as of the effective time of the Reverse Stock Split, we would adjust and proportionately decrease the total number of shares of our common stock that may be the subject of the future grants under our stock plans. Also, as discussed above under the heading “Proposal No. 1 Approval of Issuance Proposal — Adjustments to Exercise Prices and Underlying Shares — Series A Warrant Adjustments for Reverse Splits and Share Combination Events,” upon a Share Combination Event (such as the Reverse Stock Split), if the Event Market Price (in this case, the lowest daily dollar volume -weightedaverage price per share of our common stock during the period commencing on the trading day immediately following the Reverse Stock Split 32 and ending on the fifth trading day immediately following the Reverse Stock Split) is less than the exercise price of the Series A Warrants then in effect (after giving effect to the proportionate adjustment for the Reverse Stock Split), at the close of trading on the last day of the Share Combination Adjustment Period (in this case, the fourth trading day immediately following the Reverse Stock Split), the exercise price then in effect on the fifth trading day following the