Company: EDSA
Filing Date: 2025-09-09
Form Type: 424B5
Source: 0001171843-25-005799
Chunk: 26

Company: Edesa Biotech, Inc.
Filing Date: 2025-09-09
Form: 424B5
Chunk 26
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 PFIC
and then ceases to be so classified, a U.S. Holder may make an election (a “deemed sale election”) to be treated for U.S.
federal income tax purposes as having sold such U.S. Holder’s common shares on the last day of the taxable year of the Company during
which it was a PFIC. A U.S. Holder that made a deemed sale election would then cease to be treated as owning stock in a PFIC by reason
of ownership of common shares. Any gain recognized, however, as a result of making the deemed sale election would be subject to the adverse
rules described above and loss would not be recognized.

Lastly, if we are not treated as a PFIC,
and you paid taxes as if we were a PFIC, then you may be able to claim a refund for taxes you paid in excess of the taxes you actually
owed. If you do not timely make such a refund claim, then your refund will be disallowed and you will bear more taxes than you actually
owe.

Prospective investors should consult
their tax advisors regarding the potential application of the PFIC regime and any reporting obligations to which they may be subject under
that regime.

Taxation of Distributions

Subject to the PFIC rules discussed
above, any distributions paid by us out of current or accumulated earnings and profits (as determined for U.S. federal income tax purposes),
before reduction for any Canadian withholding tax paid with respect thereto, will generally be taxable to a U.S. Holder as foreign source
dividend income, and generally will not be eligible for the dividends received deduction generally allowed to corporations.

Distributions in excess of current
and accumulated earnings and profits will be treated as a non-taxable return of capital to the extent of the U.S. Holder’s adjusted
tax basis in the common shares and, thereafter, as capital gain. We do not, however, intend to calculate our earnings and profits under
U.S. federal income tax principles. Therefore, U.S. Holders should expect that any distribution from us generally will be treated for
U.S. federal income tax purposes as a dividend. Prospective investors should consult their own tax advisors with respect to the appropriate
U.S. federal income tax treatment of any distribution received from us.

| S-16 |

Dividends paid to non-corporate
U.S. Holders by us in a taxable year in which we are treated as a PFIC, or in the immediately following taxable year, will