Incannex Healthcare Holdings Ltd (ticker: IXHL) experienced a volatile trading session following the announcement of an expansion to its at-the-market (ATM) offering program. The company filed a prospectus supplement to increase the capacity of its existing ATM offering by $100 million, although it clarified that it is under no obligation to issue any shares under this program. This filing was initially misinterpreted by investors as a new share offering, causing the stock to plummet by approximately 40.5% pre-market from $1.61 to around $0.7980. Despite the sharp drop, the stock showed signs of recovery during the trading day, rising back above $1.00 and reaching intraday highs near $1.25, representing a gain of over 50% from the low. Market commentary noted that the company has recently sold approximately $63.4 million worth of shares under the ATM program, suggesting no immediate catalyst for further dilution. The stock's rebound was attributed to the clarification that no new offering was announced, which helped short sellers face pressure as the price recovered toward its previous closing levels.