Company: EDSA
Filing Date: 2025-03-11
Form Type: 424B3
Source: 0001171843-25-001403
Chunk: 4

Company: Edesa Biotech, Inc.
Filing Date: 2025-03-11
Form: 424B3
Chunk 4
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5, we entered
into a Securities Purchase Agreement with the Selling Shareholders, pursuant to which we sold to the Selling Shareholders in the Private
Placement, an aggregate of (i) 834 Preferred Shares, each of which is initially convertible into approximately 5,208 common shares at
a conversion price of $1.92 per conversion share, and (ii) 3,468,746 Shares. The purchase price per Preferred Share was $10,000 and the
purchase price per Share was $1.92. The gross proceeds were approximately $15.0 million, prior to deducting offering expenses payable
by us. A holder of Preferred Shares will not have the right to convert any portion of its Preferred Shares, if, together with its affiliates,
it would beneficially own in excess of 4.99% (or, at the option of the holder, 9.99%) of the number of common shares outstanding immediately
after giving effect to such conversion, provided, however, that a holder may increase or decrease the beneficial ownership limitation
by giving 61 days’ notice to the Company, but not to any percentage in excess of 19.99%. The Private Placement closed on February
12, 2025 (the “Closing Date”).

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In connection with the Private Placement,
on February 12, 2025, we also entered an Investor Rights Agreement (the “Investor Rights Agreement”) with the Selling Shareholders,
whereby we agreed to (i) use reasonable best efforts to file a registration statement for the resale of the Shares and Conversion Shares
within 30 days after the Closing Date and cause such registration statement to become effective no later than 75 days after the date that
we file such registration statement (or 120 days in the event of a full review by the SEC) and (ii) use reasonable best efforts to keep
any such registration statement continuously effective until the date that all of the Shares and Conversion Shares (X) have been sold
under such registration statement, (Y) have been sold pursuant to Rule 144, or (Z) may be sold without volume or manner-of-sale restrictions
pursuant to Rule 144 and without the requirement for the Company to be in compliance with the current public information requirement under
Rule 144. We have filed the registration statement of which this prospectus forms a part pursuant to the Investor Rights Agreement.

#### Implications of Being a Smaller Reporting Company
We are currently a “smaller reporting