Company: EDSA
Filing Date: 2025-09-09
Form Type: 424B5
Source: 0001171843-25-005799
Chunk: 20

Company: Edesa Biotech, Inc.
Filing Date: 2025-09-09
Form: 424B5
Chunk 20
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.S. corporation owns at least 25% by value of the
stock of another corporation, the non-U.S. corporation is treated for purposes of the income and asset tests as (i) owning its proportionate
share of the assets of the other corporation and as (ii) receiving directly its proportionate share of the other corporation’s income.

Under applicable attribution rules,
if we are a PFIC, U.S. Holders will be deemed to own their proportionate share of any of our subsidiaries which is also a PFIC (a “Subsidiary
PFIC”), and will be subject to the adverse PFIC rules discussed below on their proportionate share of any (i) distribution on the
shares of a Subsidiary PFIC and (ii) disposition or deemed disposition of shares of a Subsidiary PFIC, both as if such U.S. Holders directly
held the shares of such Subsidiary PFIC. Accordingly, U.S. Holders should be aware that they could be subject to tax under the PFIC rules
even if no distributions are received and no redemptions or other dispositions of common shares are made. In addition, U.S. Holders may
be subject to U.S. federal income tax on any indirect gain realized on the stock of a Subsidiary PFIC on the sale or disposition of common
shares.

| S-13 |

The determination of whether we are,
or will be, a PFIC for a taxable year depends, in part, on the application of complex U.S. federal income tax rules, which are subject
to various interpretations. Although the matter is not free from doubt, we do not believe that we or our subsidiary were a PFIC during
our September 30, 2024 taxable year and will not likely be a PFIC during our September 30, 2025 taxable year. Because PFIC status is based
on our income, assets and activities for the entire taxable year, and our market capitalization, it is not possible to determine whether
we will be characterized as a PFIC for the September 30, 2025 taxable year until after the close of the taxable year. The tests for determining
PFIC status are subject to a number of uncertainties. These tests are applied annually, and it is difficult to accurately predict future
income, assets and activities relevant to this determination. In addition, because the market price of our common shares is likely to
fluctuate, the market price