Company: EDSA
Filing Date: 2025-09-09
Form Type: 424B5
Source: 0001171843-25-005799
Chunk: 27

Company: Edesa Biotech, Inc.
Filing Date: 2025-09-09
Form: 424B5
Chunk 27
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 not be eligible
for the special reduced rates normally applicable to long-term capital gains. In all other taxable years, dividends paid by us should
be taxable to a non-corporate U.S. Holder at the special reduced rates normally applicable to long-term capital gains, provided that
certain conditions are satisfied (including a minimum holding period requirement). We believe we were not a PFIC for the September 30,
2024 taxable year. However, no assurance can be provided that we will not be classified as a PFIC for September 30, 2025 and, therefore,
no assurance can be provided that a U.S. Holder will be able to claim a reduced rate for dividends paid in the September 30, 2026 or
September 30, 2027 years (if any). Please see “Material U.S. Federal Income Tax Considerations — Tax Consequences if we are a Passive Foreign Investment Company” above for a more detailed discussion.

Under current law, payments of dividends
by us to non-Canadian investors are generally subject to a 25% Canadian withholding tax. The rate of withholding tax applicable to U.S.
Holders that are eligible for benefits under the Canada-United States Tax Convention (the “Convention”) is reduced to a maximum
of 15%. This reduced rate of withholding will not apply if the dividends received by a U.S. Holder are effectively connected with a permanent
establishment of the U.S. Holder in Canada. For U.S. federal income tax purposes, U.S. Holders will be treated as having received the
amount of Canadian taxes withheld by the Company, and as then having paid over the withheld taxes to the Canadian taxing authorities.
As a result of this rule, the amount of dividend income included in gross income for U.S. federal income tax purposes by a U.S. Holder
with respect to a payment of dividends may be greater than the amount of cash actually received (or receivable) by the U.S. Holder from
the Company with respect to the payment.

Subject to certain limitations, a U.S.
Holder will generally be entitled, at the election of the U.S. Holder, to a credit against its U.S. federal income tax liability, or a
deduction in computing its U.S. federal taxable income, for Canadian income taxes withheld by us. This election is made on a year-by-year
basis and applies to all foreign taxes paid (whether directly or through withholding) by a U.S. Holder during a year. For purposes of