Edesa Biotech, Inc. announced on October 31, 2024, that an entity affiliated with its Chief Executive Officer and Founder, Par Nijhawan, MD, has committed to invest up to $5.0 million in the company. An immediate investment of approximately $1.5 million was made through the purchase of Series A-1 Convertible Preferred Shares and warrants.
The Series A-1 Preferred Shares are convertible into common shares at a conversion price of $3.445. The accompanying warrants are exercisable for a number of common shares equal to 75% of the common shares initially issuable upon conversion of the preferred shares, with an exercise price of $3.445 per share and a five-year expiry.
In connection with this financing, a previously established $10 million revolving credit agreement with the purchaser was terminated, from which no funds had been drawn. This strategic investment bolsters the company's balance sheet and demonstrates strong insider confidence in Edesa's development pipeline and strategic initiatives.
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