Company: IXHL
Filing Date: 2025-04-17
Form Type: PRER14A
Source: 0001213900-25-033013
Chunk: 51

Company: Incannex Healthcare Inc.
Filing Date: 2025-04-17
Form: PRER14A
Chunk 51
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 on this proposal.

THE BOARD OF DIRECTORS RECOMMENDS APPROVAL OF THE AMENDMENTS TO THE 2023 EQUITY INCENTIVE PLAN TO INCREASE BY 2,700,000 SHARES THE AGGREGATE NUMBER OF SHARES WHICH MAY BE GRANTED and to ADD THE evergreen provision,AND PROXIES SOLICITED BY THE BOARD OF DIRECTORS WILL BE VOTED IN FAVOR OF THE AMENDMENTS UNLESS A STOCKHOLDER HAS INDICATED OTHERWISE ON THE PROXY.

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Proposal No. 4
APPROVAL OF THE REVERSE STOCK SPLIT PROPOSAL</div>

General

On April 15, 2025, our board of directors unanimously
approved, subject to stockholder approval, a certificate of amendment to our Amended and Restated Certificate of Incorporation to effect
a reverse stock split of our outstanding common stock by combining outstanding shares of common stock into a lesser number of outstanding
shares of common stock at a ratio of not less than 1-for-2 and not more than 1-for-50, with the exact ratio
to be set within this range by our board of directors at its sole discretion (the “Reverse Stock Split”). In its sole discretion,
our board of directors may alternatively elect to abandon such proposed certificate of amendment and not effect the Reverse Stock Split
approved by stockholders. Upon the effectiveness of the certificate of amendment to our Amended and Restated Certificate of Incorporation
effecting the Reverse Stock Split, each share of our common stock will be issued for a specified number of shares in accordance with the
ratio for the Reverse Stock Split selected by our board of directors.

Since March 7, 2025, the closing bid price for
our common stock has been below $1.00 per share. If we are unable to maintain a minimum closing price of $1.00 per share for the preceding
30 consecutive trading days, we will receive a deficiency letter from the staff of Nasdaq (the “Staff”). While the Staff may
provide us with a 180-calendar day grace period to regain compliance with the bid price requirement, we may also need to be in compliance
with this bid price requirement and other Nasdaq listing requirements to transfer the listing of the shares of our common stock to the
Nasdaq Capital Market. Many companies seek to cure this bid price deficiency utilizing a reverse stock split. However, pursuant to the
terms of the Securities Purchase Agreement, we are prohibited from