Why Did IXHL Stock Tank Over 32% Today?
Synopsis
The company’s board approved a 1-for-30 reverse stock split, effective on February 26.
- The reverse split will consolidate every 30 existing shares into one new share.
- The move is intended to help the company comply with Nasdaq’s minimum bid price requirements.
- After the split, the company’s outstanding shares will decrease from roughly 358.3 million to about 11.94 million.
Incannex Healthcare Inc. (IXHL) announced on Wednesday that its board of directors has approved a 1-for-30 reverse stock split, which was previously approved by shareholders at a special meeting on May 27, 2025.
The reverse split is set to take legal effect at 4:01 p.m. ET on Feb. 26, 2026.
Purpose And Impact Of The Split
Following this adjustment, Incannex Healthcare common shares will begin trading on The Nasdaq Capital Market under a new CUSIP number, 45333F 208, on February 27, while retaining the ticker symbol ‘IXHL’.
The reverse split will consolidate every 30 existing shares into one new share, aiming to raise the per-share market price. The move is intended to help the company comply with Nasdaq’s minimum bid price requirements and maintain continued listing eligibility.
Following the update, Incannex stock tumbled over 32% on Wednesday morning. On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory amid ‘high’ message volume levels.
Share Structure And Equity Adjustments
Incannex said that no fractional shares will be issued, and shareholders entitled to fractional amounts will receive an additional share to round up to a whole unit.
After the split, the company’s outstanding shares will decrease from roughly 358.3 million to about 11.94 million, although the total number of authorized shares will remain unchanged. Existing equity awards and stock incentive plans will see proportional adjustments in both share numbers and exercise prices to reflect the split.
In January, Incannex said it is entering 2026 with over $70 million in cash, following a $12.5 million private placement financing and the elimination of legacy Series A warrants. The company also authorized a $20 million share repurchase program.
IXHL stock has declined by over 87% in the last 12 months.
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