Company: EDSA
Filing Date: 2025-09-09
Form Type: 424B5
Source: 0001171843-25-005799
Chunk: 19

Company: Edesa Biotech, Inc.
Filing Date: 2025-09-09
Form: 424B5
Chunk 19
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. Holders purchasing common shares pursuant to this prospectus supplement and that will hold such common shares as capital assets.
For purposes of this summary, “U.S. Holder” means a beneficial holder of common shares who or that for U.S. federal income
tax purposes is:

| ● | an individual citizen or resident alien of the U.S.; |

| ● | a corporation or other entity classified as a corporation for U.S. federal income                                  
 tax purposes created or organized in or under the laws of the U.S., any state thereof or the District of Columbia; |

| ● | an estate, the income of which is subject to U.S. federal income taxation regardless of its source; or |

| ● | a trust, if (a) a court within the U.S. is able to exercise primary supervision                                                             
 over the administration of such trust and one or more “U.S. persons” (within the meaning of the Code) have the authority to                 
 control all substantial decisions of the trust, or (b) a valid election is in effect to be treated as a U.S. person for U.S. federal income 
 tax purposes.                                                                                                                               |

PROSPECTIVE INVESTORS SHOULD CONSULT
THEIR OWN TAX ADVISORS WITH REGARD TO THE APPLICATION OF THE TAX CONSEQUENCES DESCRIBED BELOW TO THEIR PARTICULAR SITUATIONS AS WELL AS
THE APPLICATION OF ANY STATE, LOCAL, FOREIGN OR OTHER TAX LAWS, INCLUDING GIFT AND ESTATE TAX LAWS.

Tax Consequences if we are a Passive Foreign Investment Company

A foreign corporation will be classified
as a PFIC for any taxable year in which, after taking into account the income and assets of the corporation and that of certain subsidiaries
pursuant to applicable “look-through rules,” either (i) at least 75% of its gross income is “passive income” (the
“income test”) or (ii) at least 50% of the average quarterly value of its assets is attributable to assets which produce passive
income or are held for the production of passive income (the “asset test”). Passive income generally includes dividends, interest,
rents and royalties (other than certain rents and royalties derived in the active conduct of a trade or business), annuities and gains
from assets that produce passive income. For purposes of the asset test, the value of the Company’s assets is expected to be based,
in part, on the quarterly average of the fair market value of such assets. If a non-U