Company: EDSA
Filing Date: 2025-02-13
Form Type: 8-K
Source: 0001171843-25-000796
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Company: Edesa Biotech, Inc.
Filing Date: 2025-02-13
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive Agreement.

Purchase Agreement

On February 12, 2025, Edesa Biotech, Inc. (the “ Company”)
entered into a Securities Purchase Agreement (the “ Purchase Agreement”) with affiliates of Velan Capital Investment
Management LP (the “ Lead Investors”) and several additional investors signatory thereto (the “ Additional Investors”
and together with the Lead Investors, the “ Investors”), pursuant to which the Company agreed to issue and sell to the
Investors in a private placement (the “ Private Placement”), an aggregate of (i) 834 shares (the “ Preferred
Shares”) of the Company’s newly designated Series B-1 Convertible Preferred Shares, stated value $10,000 per share, each
of which is initially convertible into approximately 5,208 common shares (the “ Conversion Shares”), without par value,
of the Company (the “ Common Shares”) at a conversion price of $1.92 per Conversion Share, and (ii) 3,468,746 Common
Shares (the “ Shares”). The purchase price per Preferred Share was $10,000 and the purchase price per Share was $1.92.
The gross proceeds to the Company from the Private Placement were approximately $15.0 million, prior to deducting offering expenses payable
by the Company. The Private Placement closed on February 12, 2025 (the “ Closing Date”).

The Company expects to use the net proceeds from
the Private Placement to fund the continued advancement of EB06, its CXCL10 monoclonal antibody into a Phase 2 clinical study in subjects
with nonsegmental vitiligo, and for working capital and general corporate purposes. The proceeds are expected to fund Edesa’s CXCL10
antibody program through the end of fiscal 2026.

For a description of the terms of the Preferred Shares, see Item 5.03 below.

The Purchase Agreement contains customary representations and warranties
and agreements of the Company and the Investors and customary indemnification rights and obligations of the parties. The representations
and warranties of each party set forth in the Purchase Agreement have been made solely for the benefit of the other parties to the Purchase
Agreement, and such representations and warranties should not be relied on by any other person.

Investor Rights Agreement

In connection with the Purchase Agreement, on February 12, 2025, the Company
also entered an Investor Rights Agreement (the “IRA”) with the Investors, whereby the