Shares of Incannex Healthcare Inc. (NASDAQ: IXHL) plunged roughly 40% on Wednesday after the company announced a 1-for-30 reverse stock split approved by its board of directors.
According to the company statement, the reverse split is scheduled to be legally effective at 4:01 p.m. Eastern Time on Thursday. The firm said its common stock should start trading on a post-split adjusted basis on Friday and will do so under a new CUSIP number, 45333F 208, while keeping the current ticker symbol "IXHL."
The conversion ratio will consolidate every 30 existing shares of common stock into one share. Incannex said the action is intended to raise the per-share trading price to enable the company to pursue compliance with Nasdaq's minimum bid price requirement for continued listing.
Outstanding shares will be reduced on a pro forma basis from approximately 358,329,368 shares as of February 20 to approximately 11,944,313 shares. The company emphasized that the total number of authorized shares will remain unchanged. It also noted that the exercise prices of outstanding equity awards and the number of shares issued and issuable under its stock incentive plan will be adjusted proportionally.
The company previously obtained shareholder approval for the reverse split at a special meeting held on May 27, 2025. Incannex indicated that no fractional shares will be issued in connection with the reverse split; instead, stockholders are entitled to receive an additional fraction of a share to round up to the next whole share.
For shareholders holding shares in electronic book-entry form, no action is required to receive post-split shares. Incannex said its transfer agent, Computershare Trust Company, N.A., will provide instructions to holders of physical stock certificates on how to exchange those certificates following the split.
The company presented the reverse split as a procedural step to elevate the stock's per-share level, with proportional technical adjustments to equity compensation and incentive-plan share counts. The announcement and imminent split coincided with a steep intraday move in the market price, as reflected by the reported 40% decline on Wednesday.
Investors and market participants should note the change in CUSIP for post-split trading activity and the consolidated share counts that will follow the conversion on Thursday evening and trading adjustments on Friday.