Company: PFSA
Filing Date: 2025-02-18
Form Type: PRE 14A
Source: 0001213900-25-014919
Chunk: 24

Company: Profusa, Inc.
Filing Date: 2025-02-18
Form: PRE 14A
Chunk 24
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 may be adversely affected in terms of competing with other special purpose acquisition companies which
do not have similar foreign ownership issues.

Moreover, the process of government review, whether by the CFIUS or
otherwise, could be lengthy and we have limited time to complete our initial business combination. If we cannot complete our initial business
combination by March 22, 2025, or such later date that may be approved by our shareholders, such as the Extended Date, because the review
process extends beyond such timeframe or because our initial business combination is ultimately prohibited by CFIUS or another U.S. government
entity, we may be required to liquidate. If we liquidate, our public shareholders may only receive $10.10 per share, without taking into
account any interest earned on IPO proceeds held in the Trust Account, and our warrants will expire worthless. This will also cause you
to lose the investment opportunity in a target company, and the chance of realizing future gains on your investment through any price
appreciation in the combined company.

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A 1% U.S. federal excise tax could be imposed on the Company in connection with redemptions by Company of its shares in connection with a business combination or other stockholder vote pursuant to which stockholders would have a right to submit their shares for redemption (a “Redemption Event”).

On August 16, 2022, the Inflation Reduction Act of 2022
(“IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax
on certain repurchases (including redemptions) of stock by publicly traded domestic (i.e., U.S.) corporations and certain domestic subsidiaries
of publicly traded foreign corporations.

The excise tax is imposed on the repurchasing corporation itself, not
its stockholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares
repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted
to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable
year. In addition, certain exceptions apply to the excise tax. The Treasury has been given authority to provide regulations and other
guidance to carry out, and prevent the abuse or avoidance of the