Company: PFSA
Filing Date: 2025-09-10
Form Type: PRE 14A
Source: 0001213900-25-086308
Chunk: 12

Company: Profusa, Inc.
Filing Date: 2025-09-10
Form: PRE 14A
Chunk 12
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 which each such party guaranteed the other parties’ obligations under the PIPE Convertible Notes. Why We Need Stockholder Approval As a result of our listing on The Nasdaq Capital Market, issuances of our common stock are subject to the Nasdaq Listing Rules, including Rule 5635(d). Nasdaq Listing Rule 5635(d) requires us to obtain stockholder approval prior to the issuance of securities in connection with a transaction, other than a public offering, involving the sale, issuance, or potential issuance by us of more than 19.99% of our outstanding shares of our common stock (or securities convertible into or exercisable for shares of our common stock) at a price less than the lower of (i) the official closing price 7 of our common stock on Nasdaq immediately preceding the signing of the binding agreement, or (ii) the average official closing price of our common stock on Nasdaq for the five consecutive trading days ending on the trading day immediately preceding the signing of the binding agreement (the “ Nasdaq 20% Rule”). Pursuant to the PIPE Convertible Notes in no event may we issue or sell to Ascent shares of our common stock in excess of the 19.99% of the Company’s issued and outstanding shares of common stock (the “Exchange Cap”), unless (i) we obtain stockholder approval to issue shares of common stock in excess of the Exchange Cap or (ii) the average conversion price per share of all applicable sales of our common stock to Ascent under the PIPE Convertible Notes equals or exceeds the Minimum Price (which represents the lower of (a) the official closing price of our Common Stock on Nasdaq immediately preceding the execution of the Purchase Agreement and (b) the average official closing price of our Common Stock on Nasdaq for the five consecutive trading days immediately preceding the execution of the Purchase Agreement. Potential Effects of Approval of this Proposal The PIPE Convertible Notes provide up to $20 million of near -termcapital with minimal closing contingencies and no cash interest payments prior to maturity. It aligns the PIPE Investors’ economic interests with those of our stockholders through equity convertibility and a beneficial -ownershipcap. The notes are senior -secured, which limits execution risk while preserving strategic flexibility for future credit facilities. Additionally, the financing can be drawn in tranches at the Company’s option, enabling the Company to match capital deployment with operational milestones and market conditions. After considering the Company’s capital requirements, the terms of the PIPE Convertible Notes, the relative costs and benefits of alternative