Company: EDSA
Filing Date: 2025-03-04
Form Type: S-3
Source: 0001171843-25-001239
Chunk: 19

Company: Edesa Biotech, Inc.
Filing Date: 2025-03-04
Form: S-3
Chunk 19
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 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 amounts due
in respect of such Series A-1 Share.

Series B-1 Convertible Preferred Shares

On February 12, 2025, we filed a notice of alteration
to our Articles to amend our authorized share structure to create a series of preferred shares, without par value, designated as “Series
B-1 Convertible Preferred Shares” (referred to herein as the “Preferred Shares”). We are authorized to issue up to 1,000
Preferred Shares.

The Preferred Shares have no par value and a stated
value of $10,000 per share and rank, with respect to redemption payments, rights upon liquidation, dissolution or winding-up of the Company,
or otherwise, senior in preference and priority to the common shares and each other class or series of shares ranking junior to the Preferred
Shares, but equal to other series of preferred shares.

If we declare or make any dividend or other distribution
to common shares, the holders of Preferred Shares will be entitled to dividends, on an as-if converted basis, equal to and in the same
form as dividends actually paid on the common shares, when and if actually paid.

Each Preferred Share is convertible into a number of
common shares calculated by dividing (i) the sum of the stated value of such Preferred Share by (ii) a fixed conversion price of $1.92.
A holder of Preferred Shares will not have the right to convert any portion of its Preferred Shares if, together with its affiliates,
it would beneficially own in excess of 4.99% (or, at the option of the Investor, 9.99%) of the number of common shares outstanding immediately
after giving effect to such conversion, provided, however, that a holder may increase or decrease the beneficial ownership limitation
by giving 61 days’ notice to us, but not to any percentage in excess of 19.99%. The Preferred Shares do not have the right to vote
on any matters except as required by law and do not contain any variable pricing features, or any price-based anti-dilutive features.

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In the event of any liquidation, dissolution or winding-up
of the Company, a holder of Preferred Shares shall be entitled to (i) receive, before any distribution or payment may be made with respect
to common shares, an amount equal to 100%