Company: PFSA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076861
Chunk: 142

Company: Profusa, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 142
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 Inc. and Dawson James Securities, Inc. (together, the “Investors”),
pursuant to which such Investors agreed that to the extent that redemptions in connection with the vote to approve the Business Combination
reduces the Company’s trust account balance below $1.25 million, the Investors would offer such redeeming shareholders an
opportunity to rescind the redemption of their shares and would instead purchase such shares. Such purchases would be structured in compliance
with the requirements of Rule 14e-5 under the Exchange Act or would otherwise not constitute a tender offer pursuant
to the Exchange Act.

Merger Agreement Amendment and Termination
of Financing

On January 12, 2024, the parties to the Merger
Agreement entered into an Amendment No. 2 to the Merger Agreement pursuant to which the parties agreed to revise the definition of “Milestone
Event III” and such that the Earnout Revenue milestone of $11,864,000 for the fiscal year ended December 31, 2024, was replaced
with a milestone of consummating the Tasly JV (as defined in the amended Merger Agreement) and receipt of the related funding during
the fiscal year ended December 31, 2024. All other aspects of the Merger Agreement were unmodified.

On February 16, 2024, the Company’s Board
of Directors approved and authorized the Company to execute a binding term sheet (“Original term sheet”) between the Company
and Profusa, Inc. (the “Target”) for PIPE funding with Vellar Opportunities Fund Master, Ltd. (“Vellar”). Vellar
agreed to subscribe for 2,500,000 shares of common and/or preferred stock of the Target upon the closing of the Business Combination
at a price of $2.00 per share, for a total amount of $5,000,000 to be funded by Vellar immediately prior to the Business Combination.
On May 9, 2024, the original term sheet between the Company and Profusa was amended and restated to clarify certain provisions of the
Original term sheet.

On March 4, 2024, the parties to the Merger Agreement
entered into Amendment No. 3 to the Merger Agreement pursuant to which the parties agreed to revise the definition of Company Reference
Value (as defined in the Merger Agreement) to adjust for financing proceeds and debt conversions that could be received by Profusa prior
to