Edesa Biotech's Founder Makes Strategic Investment in the Company

Core Viewpoint - Edesa Biotech, Inc. has entered into a purchase agreement to raise up to $5.0 million, demonstrating confidence in its growth potential and commitment to strategic initiatives [1][3]. Investment Details - The investment includes an immediate contribution of approximately $1.5 million and involves the purchase of Series A-1 Convertible Preferred Shares valued at $10,000 each, along with warrants for common shares [2]. - The Series A-1 Preferred Shares can be converted into common shares at a price of $3.445, with warrants exercisable for 75% of the common shares initially issuable upon conversion [2][3]. Company Overview - Edesa Biotech is focused on developing therapeutics for immuno-inflammatory diseases, with a clinical pipeline in Medical Dermatology and Respiratory [5]. - Key products in development include EB06 for vitiligo, EB01 for Allergic Contact Dermatitis, and EB05 for Acute Respiratory Distress Syndrome (ARDS) [5]. - The company has received funding from the Government of Canada to support the development of its respiratory drug candidate EB05 [5]. Regulatory and Shareholder Considerations - Purchases exceeding $2.0 million in Series A-1 Preferred Shares require prior approval from the company's shareholders, excluding the CEO [3]. - The previously established $10 million revolving credit agreement with the purchaser has been terminated without any funds being drawn [3].