Company: EDSA
Filing Date: 2025-09-09
Form Type: 424B5
Source: 0001171843-25-005799
Chunk: 28

Company: Edesa Biotech, Inc.
Filing Date: 2025-09-09
Form: 424B5
Chunk 28
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the foreign tax credit limitation, dividends paid by us generally will constitute foreign source income in the “passive category
income” basket rather than the “general category income” basket). A U.S. Holder will be denied a foreign tax credit
with respect to Canadian income tax withheld from dividends received with respect to our common shares to the extent the U.S. Holders
has not held the common shares for at least 16 days of the 30-day period beginning on the date which is 15 days before the ex-dividend
date or to the extent the U.S. Holder is under an obligation to make related payments with respect to substantially similar or related
property. Any days during which a U.S. Holder has substantially diminished its risk of loss on our common shares are not counted toward
meeting the 16-day holding period required by the statute The foreign tax credit rules are complex and prospective investors should consult
their tax advisors concerning the availability of the foreign tax credit in their particular circumstances.

Dividends paid in Canadian dollars will
be included in the gross income of a U.S. Holder in a U.S. dollar amount calculated by reference to the exchange rate in effect on the
date the U.S. Holder (actually or constructively) receives the dividend, regardless of whether such Canadian dollars are actually converted
into U.S. dollars at that time. If the Canadian dollars received are not converted into U.S. dollars on the date of receipt, a U.S. Holder
will have a tax basis in the Canadian dollars equal to their U.S. dollar value on the date of receipt. Gain or loss, if any, realized
on a sale or other disposition of the Canadian dollars will generally be U.S. source ordinary income or loss to a U.S. Holder.

We generally do not pay any dividends and do not anticipate paying any dividends
in the foreseeable future.

Sale, Exchange or Other Taxable Disposition of Common Shares

Subject to the PFIC rules discussed
above, upon a sale, exchange or other taxable disposition of common shares, a U.S. Holder generally will recognize capital gain or loss
for U.S. federal income tax purposes equal to the difference, if any, between the amount realized on the sale, exchange or other taxable
disposition and the

U.S. Holder’s adjusted tax basis in the common shares.

If the U.S. Holder receives Canadian
dollars in the transaction, the amount realized will be the U.S. dollar value of the Canadian dollars received, which is