Company: EDSA
Filing Date: 2025-02-13
Form Type: 8-K
Source: 0001171843-25-000796
Chunk: 6

Company: Edesa Biotech, Inc.
Filing Date: 2025-02-13
Form: 8-K
Item: Item 5.03
Chunk 6
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Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

On February 12, 2025, the Company filed a notice of alteration to its articles
to create the rights, preferences and restrictions pertaining to the 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.

If the Company declares or makes 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 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 the Company, 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.

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% of the stated value or (ii) at its option, subject to the limitations on conversion, convert the Preferred Shares
prior to such liquidation event.

The foregoing summary of the rights, preferences, restrictions and other
matters pertaining to the Preferred Shares is not intended to be complete and is qualified in its entirety by reference to Part 28 of
the Articles of Edesa - Special Rights and Restrictions Attaching to the Series B-1 Convertible