Company: EDSA
Filing Date: 2025-03-04
Form Type: S-3
Source: 0001171843-25-001239
Chunk: 18

Company: Edesa Biotech, Inc.
Filing Date: 2025-03-04
Form: S-3
Chunk 18
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senior in preference and priority to our common shares, but equal to other series of preferred shares. Until the three-year anniversary
of the day of issuance, holders of the Series A-1 Shares are entitled to an annual return equal to 10% of the stated value per Series
A-1 Share, payable by the issuance of common shares at the conversion price upon a buy-back by the Company, liquidation or on
conversion at the conversion price (calculated daily). Holders of the Series A-1 Shares will be entitled to dividends, on an as-if converted
basis, equal to and in the same form as dividends actually paid on our common shares when and if actually paid.

Each Series A-1 Share is convertible into a number
of our common shares calculated by dividing (i) the sum of the stated value of such Series A-1 Share plus a return equal to 10% of the
stated value per Series A-1 Share per annum, calculated daily, by (ii) a fixed conversion price of $3.445. A holder of the Series A-1
Shares will not have the right to convert any portion of its Series A-1 Shares if the holder, together with its affiliates, would beneficially
own in excess of 19.99% of the number of common shares outstanding immediately after giving effect to such conversion. The Series A-1
Shares do not have the right to vote on any matters except as required by law.

In the event of any liquidation, dissolution or winding-up
of the Company, a holder of Series A-1 Shares shall be entitled to receive, before any distribution or payment may be made with respect
to our common shares, an amount equal to 100% of the stated value, plus a return equal to 10% of the stated value per Series A-1 Share
per annum, calculated daily. If amounts payable on a liquidation, dissolution or winding-up of the Company, or on the occurrence of any
other event that entitles the shareholders holding all series of preferred shares to be paid out of the assets of the Company legally
available for distribution to the Company’s shareholders, including a return of capital, are not paid in full, holders of Series
A-1 Shares must participate rateably in such distribution with holders of all other series of preferred shares.

Beginning three years after the date of issuance, we
may buy-back some or all outstanding Series A-1 Shares for a cash payment per share equal to the