Edesa Biotech, Inc.

Analysis for Ticker: EDSA

Edesa Biotech Inc is a clinical stage biopharmaceutical company that claims to develop therapies for respiratory and skin conditions, but the internal numbers show it is actually a mechanism for moving shareholder cash into the pockets of the people running it. While the company has never earned a single dollar from distributing a product, the chief executive extracted 1.006.759$ in total pay during the 2025 fiscal year while the business lost 7,2$ million. To a child, this looks like a lemonade stand where the kids eat all the lemons and then ask their parents for more money to pay themselves for working. With an accumulated deficit of 65,9$ million, the company is trapped in a cycle of printing new shares out of thin air just to keep paying its own managers. The mechanism of survival began with a one for seven reverse split in 10/2023, which allowed the company to erase shares and keep the price high enough to stay on the stock market. During 2024, the business lost 6,2$ million while paying 78.000$ in rent for its office to a private company owned by the chief executive, Pardeep Nijhawan. He even set up a 10$ million credit line through another of his private medical corporations that the company never used, yet he was paid a 51.000$ fee just for having it exist. By 10/2024, he secured special preferred shares worth 1,54$ million that give him a 10% return paid in newly printed regular shares, ensuring his ownership grows while regular shareholders get diluted.