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

Company: Edesa Biotech, Inc.
Filing Date: 2025-09-09
Form: 424B5
Chunk 25
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 gain (but not loss) upon certain transfers of common shares that would otherwise be tax-deferred (e.g., gifts and exchanges
pursuant to corporate reorganizations). However, the specific U.S. federal income tax consequences to a U.S. Holder may vary based on
the manner in which common shares are transferred.

| S-15 |

If finalized in their current form,
the proposed Regulations applicable to PFICs would be effective for transactions occurring on or after April 1, 1992. Because the proposed
Regulations have not yet been adopted in final form, they are not currently effective, and there is no assurance that they will be adopted
in the form and with the effective date proposed. Nevertheless, the IRS has announced that, in the absence of final Regulations, taxpayers
may apply reasonable interpretations of the Code provisions applicable to PFICs and that it considers the rules set forth in the proposed
Regulations to be reasonable interpretations of those Code provisions. U.S. Holders should consult their own tax advisors about the potential
applicability of the proposed Regulations.

Certain additional adverse rules may
apply with respect to a U.S. Holder if we are a PFIC, regardless of whether such U.S. Holder makes a QEF Election. For example, under
Section 1298(b)(6) of the Code, a U.S. Holder that uses our common shares as security for a loan will, except as may be provided in Regulations,
be treated as having made a taxable disposition of such common shares.

Special rules also apply to the amount
of foreign tax credit that a U.S. Holder may claim on a distribution from a PFIC. Subject to such special rules, foreign taxes paid with
respect to any distribution by a PFIC are generally eligible for the foreign tax credit. The rules relating to distributions by a PFIC
and their eligibility for the foreign tax credit are complicated, and a U.S. Holder should consult with their own tax advisor regarding
the availability of the foreign tax credit with respect to distributions by a PFIC.

If the Company is a PFIC in any year
with respect to a U.S. Holder, the U.S. Holder will be required to file an annual information return on IRS Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund,regarding their ownership of common shares,
distributions received on common shares and any gain realized on the disposition of common shares.

If the Company is classified as a