Company: EDSA
Filing Date: 2025-03-11
Form Type: 424B3
Source: 0001171843-25-001403
Chunk: 18

Company: Edesa Biotech, Inc.
Filing Date: 2025-03-11
Form: 424B3
Chunk 18
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 A-1 Shares are entitled to an annual return equal to 10% of the stated value
per Series A-1 Share, payable by the issuance of common shares at the conversion price upon a buy-back by the Company, liquidation or
on conversion at the conversion price (calculated daily). Holders of the Series A- 1 Shares will be entitled to dividends, on an as-if
converted basis, equal to and in the same form as dividends actually paid on our common shares when and if actually paid.

Each Series A-1 Share is convertible
into a number of our common shares calculated by dividing (i) the sum of the stated value of such Series A-1 Share plus a return equal
to 10% of the stated value per Series A-1 Share per annum, calculated daily, by (ii) a fixed conversion price of $3.445. A holder of the
Series A-1 Shares will not have the right to convert any portion of its Series A-1 Shares if the holder, together with its affiliates,
would beneficially own in excess of 19.99% of the number of common shares outstanding immediately after giving effect to such conversion.
The Series A-1 Shares do not have the right to vote on any matters except as required by law.

In the event of any liquidation, dissolution
or winding-up of the Company, a holder of Series A-1 Shares shall be entitled to receive, before any distribution or payment may be made
with respect to our common shares, an amount equal to 100% of the stated value, plus a return equal to 10% of the stated value per Series
A-1 Share per annum, calculated daily. If amounts payable on a liquidation, dissolution or winding-up of the Company, or on the occurrence
of any other event that entitles the shareholders holding all series of preferred shares to be paid out of the assets of the Company legally
available for distribution to the Company’s shareholders, including a return of capital, are not paid in full, holders of Series
A-1 Shares must participate rateably in such distribution with holders of all other series of preferred shares.

Beginning three years after the date
of issuance, we may buy-back some or all outstanding Series A-1 Shares for a cash payment per share equal to the stated value plus return
equal to 10% of the stated value per Series A-1 Share per annum calculated from the original date of issue of such share, and any other
amount