Company: EDSA
Filing Date: 2025-03-04
Form Type: S-3
Source: 0001171843-25-001239
Chunk: 17

Company: Edesa Biotech, Inc.
Filing Date: 2025-03-04
Form: S-3
Chunk 17
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, without limitation: (i) the designation of each series and the number of preferred shares
that will constitute each such series; (ii) the dividend rate or amount, if any, for each series; (iii) the price at which, and the terms
and conditions on which, the preferred shares of each series may be redeemed, if such shares are redeemable; (iv) the terms and conditions,
if any, upon which preferred shares of such series may be converted into shares of other classes or series of shares of the Company, or
other securities; and (v) the maturity date, if any, for each such series; but no such special rights or restriction shall contravene
any other provision of Part 26 of our Articles.

The issuance of preferred shares may or may not have
a dilutive effect on the voting rights of shareholders owning common shares, depending on the rights and preferences set by the board
of directors. Preferred shares may be issued quickly with terms designed to delay or prevent a change in control of our company or make
removal of management more difficult. However, except for such rights relating to the election of directors on a default in payment of
dividends as may be attached to any series of the preferred shares by the board of directors or in connection with convertible preferred
shares, the holders of preferred shares shall not be entitled, as such, to receive notice of, or to attend or vote at, any general meeting
of our shareholders. Section 61 of the British Columbia Business Corporations Act provides that the special rights attached
to preferred shares may not be prejudiced or interfered with unless the shareholders holding such class of shares consent to such matter
by a special resolution of such holders of preferred shares. Additionally, the issuance of preferred shares may have the effect of decreasing
the market price of our common shares.

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Series A-1 Convertible Preferred Shares

On October 30, 2024, we filed Amended and Restated
Articles to amend our authorized share structure to amend the terms of a series of preferred shares, without par value, designated as
“Series A-1 Convertible Preferred Shares” (the “Series A-1 Shares”). We are authorized to issue up to 500 Series
A-1 Shares.

The Series A-1 Shares have a stated value of $10,000
per share and rank, with respect to redemption payments, rights upon liquidation, dissolution or winding-up of the Company, or otherwise,