Company: EDSA
Filing Date: 2025-09-09
Form Type: 424B5
Source: 0001171843-25-005799
Chunk: 21

Company: Edesa Biotech, Inc.
Filing Date: 2025-09-09
Form: 424B5
Chunk 21
---
 may affect the determination of whether we will be considered a PFIC. If a U.S. Holder owns PFIC stock indirectly
through another PFIC, separate QEF Elections must be made for the PFIC in which the U.S. Holder is a direct shareholder and the subsidiary
PFIC for the QEF rules to apply to both PFICs. There can be no assurance that we will not be considered a PFIC for any taxable year (including
our September 30, 2025 taxable year). Prospective investors should consult their tax advisors regarding the Company’s PFIC status.

If the Company is classified as a PFIC
for any taxable year during which a U.S. Holder owns common shares, the U.S. Holder, absent certain elections (including the mark-to-market
and QEF elections described below), will generally be subject to adverse rules (regardless of whether the Company continues to be classified
as a PFIC) with respect to (i) any “excess distributions” (generally, any distributions received by the U.S. Holder on the
common shares in a taxable year that are greater than 125% of the average annual distributions received by the U.S. Holder in the three
preceding taxable years or, if shorter, the U.S. Holder’s holding period for the common shares) and (ii) any gain realized on the
sale or other disposition of the common shares.

Under these adverse rules (a) the excess
distribution or gain will be allocated ratably over the U.S. Holder’s holding period, (b) the amount allocated to the current taxable
year and any taxable year prior to the first taxable year in which the Company is classified as a PFIC will be taxed as ordinary income
and (c) the amount allocated to each of the other taxable years during which the Company was classified as a PFIC will be subject to tax
at the highest rate of tax in effect for the applicable category of taxpayer for that year and an interest charge will be imposed with
respect to the resulting tax attributable to each such other taxable year. A U.S. Holder that is not a corporation will be required to
treat any such interest paid as “personal interest,” which is not deductible.

To the extent a distribution on our
common shares, does not constitute an excess distribution to a U.S. Holder under the adverse rules described above, such U.S. holder generally
will be required to include the amount of such distribution in gross income as a dividend to