READ THE LATEST ON THIS STORY | Edward Downey continues testifying at his double-murder trial

Edward Downey has admitted he did go to Sara Baillie's home the morning she was killed but says he was with two other men — and when he left the northwest apartment, the men were still there and he believed the woman and her five-year-old daughter were still alive.

Downey is on trial accused of killing Baillie and her daughter, Taliyah Marsman, in 2016.

He began testifying in his own defence Wednesday morning, after his lawyer Gavin Wolch told jurors "nobody intended to kill" Baillie.

The 48-year-old is on trial for two counts of first-degree murder. He has taken the stand, where he is being led through questions by Wolch.

On the morning of July 11, 2016, Downey says he and an old drug dealing friend named Terrance met at Baillie's home so the two men could exchange drugs for money. Downey testified Terrance and Baillie got into an argument in another room.

At one point, Downey said, Terrance shouted out asking for duct tape. Downey said he ripped off a piece and handed it to Terrance before leaving Baillie's home. Downey's fingerprints were later found by police on the tape wrapped around Baillie's face and neck.

'He wasn't there when it happened'

In his opening statement to jurors, Wolch said jurors have heard "some of the most difficult evidence" but there are still unanswered questions.

"Nobody intended to kill Ms. Baillie; as far as Mr. Downey is aware, he wasn't there when it happened," said Wolch.

Wolch said Downey left Baillie's home by himself on the morning of July 11, 2016.

"The last time Mr. Downey saw Taliyah Marsman … she was alive and well."

Downey has admitted to being a cocaine dealer with a criminal record that includes a pimping conviction.

Baillie and Taliyah both died by asphyxiation in July 2016. (Facebook)

Baillie's body was found stuffed into a laundry hamper in her northwest Calgary home on July 11, 2016. Prosecutors believe the girl was killed the same day but it wasn't until three days later that her body was found, dumped in a stand of bushes in a rural area east of the city.

On Tuesday, prosecutors Carla MacPhail and Ryan Jenkins closed their case after calling more than two weeks' worth of witnesses and evidence.

The jury also heard evidence that Downey's cellphone was in the area of Baillie's home in Panorama Hills the morning she was killed and later that day was connecting to cellphone towers near the site where the child's body was found.

Downey testified that's because he had followed Terrance to a meetup spot near the same rural area where they would exchange drugs for money.

Downey's story

On the morning of the alleged murders, Downey said he dropped his girlfriend off at the daycare where she worked before going to a Tim Hortons where he met up with an old drug dealing friend he'd known since at least 2006 named Terrance.

At the time of the Tim Hortons meetup, Terrance had a friend with him. Downey testified he does not know Terrance's real name and couldn't remember the friend's name.

Both were black men, under 6 feet tall, according to Downey.

Downey said he wanted to buy drugs from Terrance so the trio took two cars to Baillie's home in the northwest community of Panorama Hills.

They parked on side streets before going inside.

Once they were in the basement apartment, Baillie put Taliyah in her bedroom, Downey testified. Then Terrance and Baillie went to another area of her apartment to talk while Downey chatted with the unnamed man.

'They said it was OK'

At one point, Downey says, he interrupted to ask Terrance about the drugs but was offered four kilograms of cocaine, which he said was too much for him. Downey and Terrance arranged to weigh out the drugs later so Downey could have a smaller quantity.

Terrance returned to his private conversation with Baillie but Downey says he could hear the two begin to fight.

"They were getting a little loud," said Downey. "They were still fighting but they said it was OK."

Then Downey said Terrance yelled out asking for tape.

"His friend chucked me the tape, I ripped off a piece of tape ... I give it to him," said Downey.

"When Terrance asked for tape, what goes though your mind?" asked Wolch. Downey replied: "Nothing, really, I just thought he wanted the tape."

After he handed off an 18-inch piece, Downey says, he borrowed Terrance's white Mercedes, drove home, played a computer game and collected some money for the drugs.

Downey says that when he returned to Baillie's, Terrance and his friend were outside. They exchanged keys and arranged to meet up at 52nd Street and 16th Avenue N.E.

On the way there, Downey says he lost track of Terrance. Downey said he kept driving east thinking he might check out Terrance's "stash spot" for drugs but then changed his mind and turned around to pick up his girlfriend from work instead.

The connection

Downey was connected to Baillie through his then-girlfriend, a woman who can only be identified as AB because of a publication ban. AB and Baillie were best friends.

The two families spent time together and Baillie and her daughter were familiar with Downey. Just two days before the deaths, Baillie, her daughter, Downey, AB and AB's son all hung out together at the accused killer's home and everything "seemed fine," said Downey.

The Crown's theory on motive is that Downey may have blamed Baillie for encouraging AB to leave him and for preventing her from working as an escort.

The day before the killings, AB texted Downey telling him she wanted to break up.

But Downey explained that he and AB had talked about breaking up several times. Although he did believe their relationship would eventually come to an end, after the most recent breakup text, they spent the night together and things "were good" between them, he said.

In a text message to a friend, Downey said, "I'm down to one bitch and she's square." AB testified that "square" is a term for a woman who refuses to escort.

Jurors also heard that Downey wanted AB to work as a prostitute but she had refused. Downey explained it had been a plan he and AB made together that never ended up working out.

The prosecution believes the girl was murdered because she witnessed her mother's death, or at least recognized the killer, who was inside their home.

MacPhail began her cross-examination of Downey late in the afternoon before court broke for the day. She will continue on Thursday.

There are no seats left in the gallery of the Calgary courtroom. A second courtroom has been opened up for the overflow.

Court of Queen's Bench Justice Beth Hughes is presiding over the jury trial, which was scheduled to last until the end of this week.