Edesa Biotech announces $15M private placement priced at-the-market

Edesa Biotech (EDSA) announced that it has sold, in a private placement, an aggregate of 834 newly designated Series B-1 convertible preferred shares and 3,468,746 common shares in a private placement priced at-the-market under the rules of the Nasdaq Stock Market. The purchase price per Preferred Share was $10,000 and the purchase price per common share was $1.92. Officers and directors of the company purchased approximately $1.1M of the securities sold in the offering. The Series B-1 Preferred Shares and common shares were offered directly to the investors without a placement agent, underwriter, broker or dealer. Velan Capital led this placement, and it also included new investors Nantahala Capital, Rubric Capital Management LP, Stonepine Capital Management, Broadfin Holdings LLC, and existing Edesa shareholders and insiders. The offering closed on February 12, 2025. Gross proceeds from the offering were approximately $15M before deducting any offering-related expenses. Edesa currently expects to use the net proceeds from the offering, to fund the continued advancement of EB06, its CXCL10 monoclonal antibody, into a Phase 2 clinical study in subjects with nonsegmental vitiligo, and for working capital and general corporate purposes. In connection with the offering, David Liu, a Senior Analyst at Velan Capital, was appointed to Edesa’s Board of Directors, effective immediately upon closing, pursuant to an Investor Rights Agreement.