MARKHAM, ON, June 10, 2019 /CNW/ - Dr. Pardeep Nijhawan ("Dr. Nijhawan") announces that he has acquired 16,242,359 common shares of Edesa Biotech, Inc. (formerly Stellar Biotechnologies, Inc.) (the "Issuer") (the "Common Shares"). 3,042,776 Common Shares acquired by the Acquiror are directly held, and the remaining 13,199,583 Common Shares are indirectly held by Dr. Nijhawan through Pardeep Nijhawan Medicine Professional Corporation, and The Digestive Health Clinic Inc. (the "Account"). Stellar Biotechnologies, Inc. ("Stellar"), Edesa Biotech, Inc. ("Edesa"), and the shareholders of Edesa entered into a share exchange agreement (the "Share Exchange Agreement") pursuant to which Dr. Nijhawan acquired 16,242,359 Common Shares in exchange for 885,266 common shares of Edesa and 278,111 options of the Issuer in exchange for 15,158 options of Edesa (the "Exchange"). The Exchange was completed on June 7, 2019. Following the completion of the Exchange, the Issuer changed its name to "Edesa Biotech, Inc." and Dr. Nijhawan was appointed as the Chief Executive Officer and Secretary of the Issuer.
Dr. Nijhawan exchanged 885,266 common shares of Edesa, representing approximately 41.2% of the issued and outstanding common shares of Edesa, for 16,242,359 Common Shares. On the day immediately prior to closing of the Exchange, the Common Shares closed trading at a price of C$1.51. Accordingly, the value of the consideration paid by Dr. Nijhawan pursuant to the Exchange is approximately C$24,525,962.
Prior to the Exchange, Dr. Nijhawan did not directly, indirectly own and/or control any Common Shares. Immediately after the closing of the Exchange, Dr. Nijhawan, through the Accounts, now indirectly holds 16,242,359 Common Shares, representing approximately 37.9% of the issued and outstanding Common Shares of Stellar.
Dr. Nijhawan, through the Account, acquired the Common Shares for investment purposes. Dr. Nijhawan expects to monitor the business, prospects, financial condition and potential capital requirements of Stellar, and depending on its evaluation of these and other factors, Dr. Nijhawan may from time to time in the future increase or decrease their direct or indirect ownership, control or direction over Common Shares or other securities of the Issuer through market transactions, private agreements, subscriptions from treasury or otherwise.
The Issuer's head office address is 100 Spy Court, Markham, Ontario, Canada, L3R 5H6.
SOURCE Dr. Pardeep Nijhawan
For further information: including a copy of the corresponding report filed with Canadian securities regulators, please visit www.sedar.com or contact: Pardeep Nijhawan, 416-857-6712, 100 Spy Court, Markham, ON, L3R 5H6