Pardeep Nijhawan Acquires Beneficial Ownership of Additional Securities of Edesa Biotech, Inc.

MARKHAM, Ontario, Nov. 17, 2022 (GLOBE NEWSWIRE) — Dr. Pardeep Nijhawan (“Dr. Nijhawan”) announces that his beneficial ownership of common shares (“Common Shares”) in the capital of Edesa Biotech, Inc. (“Edesa”) has increased by more than 2% of the issued and outstanding Common Shares from the amount reported in the early warning report Dr. Nijhawan filed dated September 18, 2020 (the “Previous Report”).

The requirement to file this press release and corresponding early warning report (the “Report”) was triggered on November 2, 2022 as a result of the acquisition of 456,524 units (the “Units”) consisting of Common Shares from treasury and warrants to purchase Common Shares (“Warrants”) by Dr. Nijhawan through accounts over which the Acquiror had either ownership or control for cash (the “Transaction”) as part of a larger non-brokered private placement conducted by Edesa.

The Warrants will be exercisable on the earlier to occur of (i) January 1, 2023 and (ii) the date a registration statement for the Common Shares issuable upon exercise of the Warrants is declared effective (the “Initial Exercise Date”).

Each Unit consists of one Common Share, one-half of one Class A Warrant to purchase one Common Share exercisable at a price of US$1.50 (approximately C$2.044 converted into Canadian dollars at the Acquisition Exchange Rate as defined below) for a period of 12 months from the Initial Exercise Date, and one-half of one Class B Warrant to purchase one Common Share at a price of US$1.00 (approximately C$1.36 converted into Canadian dollars at the Acquisition Exchange Rate) exercisable for a period of 12 months from the Initial Exercise Date.

The Units were issued at a price of US$1.125 per Unit (approximately C$1.53 per Unit at a rate of US$1.00 = C$1.3630 being the average daily rate of exchange for United States dollars expressed in Canadian dollars on November 2, 2022, as promulgated by the Bank of Canada (the “Acquisition Exchange Rate”)) for total consideration of approximately C$700,000.

Immediately prior to the completion of the Transaction, Dr. Nijhawan owned and controlled 3,319,285 Common Shares, 278,110 options exercisable to purchase Common Shares, and 6,942 Warrants in various accounts, representing beneficial ownership of approximately 19.92% of the issued and outstanding Common Shares on a non-diluted basis and approximately 21.27% of the issued and outstanding Common Shares on a partially-diluted basis.

Immediately following the completion of the Transaction, the Acquiror owns and controls 3,775,809 Common Shares, 278,110 options exercisable for Common Shares, and 463,466 Warrants that are exercisable for Common Shares, representing beneficial ownership of approximately 19.51% of the issued and outstanding Common Shares on a non-diluted basis and approximately 22.48% of the issued and outstanding Common Shares on a partially-diluted basis.

When aggregated with Common Shares acquired by Dr. Nijhawan in trades on the NASDAQ Capital Market since the Previous Report, Dr. Nijhawan has acquired beneficial ownership of an additional 6.20% of the Common Shares since the date of the Previous Report.

Dr. Nijhawan’s beneficial ownership percentages described above are based on there being 19,353,351 Common Shares outstanding as of the date of this news release, as disclosed to Dr. Nijhawan by Edesa, and are disclosed without regard to the vesting of 99,027 unvested options held by Dr. Nijhawan, which are not exercisable within 60 days of this news release. The options vest in portions on a monthly basis and are nonetheless included for the purposes of reporting Dr. Nijhawan’s “beneficial ownership” above.

Dr. Nijhawan acquired the Units for investment purposes, and expects to monitor the business, prospects, financial condition and potential capital requirements of Edesa, and depending on evaluation of these and other factors, Dr. Nijhawan may from time to time in the future increase or decrease his direct or indirect ownership, control or direction over Common Shares, Warrants, or other securities of Edesa through market transactions, private agreements, subscriptions from treasury or otherwise.

Edesa’s head office address is 100 Spy Court, Markham, Ontario, Canada, L3R 5H6.

For further information, including a copy of the corresponding report filed with Canadian securities regulators, please visit www.sedar.com or contact:

Pardeep Nijhawan
100 Spy Court
Markham, ON
L3R 5H6