Incannex Healthcare Inc. (IXHL) announced a 1‑for‑30 reverse stock split that will take effect at 4:01 p.m. Eastern Time on February 26 2026 and will be reflected in trading on a split‑adjusted basis beginning February 27 2026. The split will reduce the number of shares outstanding from roughly 358.3 million to about 11.9 million, with no fractional shares issued; any fractional interests will be rounded up to the next whole share.
The primary purpose of the reverse split is to increase the per‑share trading price so that the company can regain compliance with Nasdaq’s minimum bid‑price requirement of $1.00 per share. Incannex had previously received an additional 180‑day extension from Nasdaq on October 22 2025, with a compliance deadline of April 20 2026. The reverse split is a regulatory action that preserves the company’s listing status and maintains access to the capital markets.
Under the split, each 30 existing shares will automatically convert into one share. Shares held electronically in book‑entry form will be adjusted automatically, while broker‑held shares will be adjusted by the broker. Physical certificate holders will receive new certificates representing the post‑split number of shares. Incannex will also adjust the exercise prices of outstanding equity awards and the number of shares issuable under its stock incentive plan to reflect the new share count, ensuring that the economic interest of shareholders remains unchanged.
Investors reacted negatively to the announcement, reflecting concerns about the need for a reverse split. The move underscores the company’s ongoing effort to maintain liquidity for its Phase 3 clinical programs, particularly for its lead drug candidate IHL‑42X, which has received FDA Fast‑Track designation. Incannex’s cash position of over $70 million as of January 2026 provides a runway into 2027, but the reverse split signals that the company must still meet the Nasdaq bid‑price threshold by the April 20 deadline.
Maintaining Nasdaq listing is critical for Incannex’s ability to raise capital through equity offerings and to attract institutional investors who often have minimum price requirements. While the reverse split does not alter shareholders’ proportional ownership, it preserves the company’s public market presence and supports the funding of its clinical pipeline. The company’s continued compliance with Nasdaq’s bid‑price rule will be closely monitored as it moves forward with its regulatory and commercial milestones.
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