Edesa Biotech Announces $15.0 Million Private Placement Priced At-the-Market Under Nasdaq Rules

Core Viewpoint - Edesa Biotech, Inc. has successfully completed a private placement, raising approximately $15.0 million to advance its clinical programs, particularly the CXCL10 monoclonal antibody for vitiligo treatment [3][10]. Group 1: Private Placement Details - Edesa sold 834 Series B-1 convertible preferred shares at a price of$10,000 each and 3,468,746 common shares at $1.92 each [1][2]. - The offering was led by Velan Capital and included participation from new and existing institutional investors, as well as company insiders [2][10]. - The offering closed on February 12, 2025, and was conducted without a placement agent or underwriter [2]. Group 2: Use of Proceeds - The net proceeds from the offering are expected to fund the advancement of EB06 into a Phase 2 clinical study for nonsegmental vitiligo, along with general corporate purposes [3][10]. - The company aims to fund its CXCL10 antibody program through the end of fiscal 2026 with the raised capital [10]. Group 3: Securities and Regulatory Information - The Series B-1 Preferred Shares are convertible into common shares at a conversion price of$1.92, with ownership limitations set at a maximum of 4.99% or 9.99% for individual holders [4]. - Edesa has agreed to file a registration statement with the SEC to register the resale of common shares and conversion shares within 30 days of the closing [7]. Group 4: Company Overview - Edesa Biotech is a clinical-stage biopharmaceutical company focused on developing treatments for immuno-inflammatory diseases, with a pipeline that includes EB06 for vitiligo and EB01 for allergic contact dermatitis [9][11]. - The company is also developing EB05 for Acute Respiratory Distress Syndrome (ARDS) and preparing an IND for EB07 to conduct a future Phase 2 study in pulmonary fibrosis [9][11].