Company: PFSA
Filing Date: 2025-02-12
Form Type: S-4/A
Source: 0001213900-25-012354
Chunk: 250

Company: Profusa, Inc.
Filing Date: 2025-02-12
Form: S-4/A
Chunk 250
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 a mechanism to bridge the difference to a valuation that Profusa thought was reasonable and in the best interest of its shareholders, and which would only be provided upon the achievement of milestones that would provide value to NorthView shareholders and potential investors. NorthView’s board noted that the consideration to be paid to Profusa in connection with the Merger, including the Earnout Shares, was below the range provided by Marshall & Stevens report, which NorthView’s board determined to be in the best interest of the NorthView stockholders. These projections were subsequently updated, as provided in the Section entitled “ Proposal 1: The Business Combination Proposal — The Background of the Business Combination — Updated Projections.” •Initially the respective management teams of NorthView and Profusa were concerned about setting a stock price target, which would be outside of the control of management of the combined company, but after discussions with counsel, investment bankers, and understanding the market terms for business combination transactions, the parties decided that a portion of the earnout consideration should be dependent on the combined company’s stock price. •The initial terms of the proposed earnout were as follows: •One -halfof the Earnout Shares would be issued if, either (i) between the 18 -monthanniversary and the two -yearanniversary of the Closing, the combined company’s common stock achieves a daily volume weighted average market price of at least $12.50 per share for any twenty (20) trading days within a thirty (30) consecutive trading day period or (ii) the consummation of a subsequent transaction occurs during this period, pursuant to which the combined company’s stockholders receive the right to consideration implying a per share value of the combined company’s common stock of at least $12.50 (“Milestone Event I”). •One -halfof the Earnout Shares will be issued if, either (i) between the first and second anniversary of the Closing, the combined company’s common stock achieves a daily volume weighted average market price of at least $14.50 per share for a similar number of days or (ii) the consummation of a subsequent transaction occurs during this period, pursuant to which the combined company’s stockholders receive the right to consideration implying a per share value of the combined company’s common stock of at least $14.50 (“Milestone Event II”). •The 30 consecutive trading day periods used to satisfy Milestone Event I and Milestone Event II may not overlap; if both Milestone Event I and Milestone Event II would be