Company: PFSA
Filing Date: 2025-02-18
Form Type: PRE 14A
Source: 0001213900-25-014919
Chunk: 27

Company: Profusa, Inc.
Filing Date: 2025-02-18
Form: PRE 14A
Chunk 27
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 and warrants on Nasdaq and (ii) the obligation to comply with the “penny stock” trading rules.

If an initial business combination is consummated but the combined
company is not able to list its common stock and warrants on Nasdaq, such securities would likely then trade only in the over-the-counter
market and the market liquidity of such securities could be adversely affected and their market price could decrease. If the common stock
and warrants were to trade on the over-the-counter market, selling such securities could be more difficult because smaller quantities
of such securities would likely be bought and sold, transactions could be delayed, and the combined company could face significant material
adverse consequences, including: (i) a limited availability of market quotations for its securities, (ii) reduced liquidity for its securities,
(iii) a determination that the common stock are a “penny stock” which will require brokers trading in such shares to adhere
to more stringent rules, including being subject to the depository requirements of Rule 419 of the Securities Act, and possibly result
in a reduced level of trading activity in the secondary trading market for the securities, (iv) limited or no news or analyst coverage,
and (v) a decreased ability to issue additional securities or obtain additional financing in the future. These factors could result in
lower prices and larger spreads in the bid and ask prices for the common stock and/or warrants, could substantially impair the combined
company’s ability to raise additional funds, and could result in a loss of institutional investor interest and fewer development
opportunities for the combined company. However, we note that the ability to meet Nasdaq listing requirements is currently a condition
to closing the business combination with Profusa.

Redemption Rights

If the Extension Proposal is approved and the Extension Amendment is
implemented, each public stockholder may seek to redeem its public shares at a per-share price, payable in cash, equal to the aggregate
amount then on deposit in the Trust Account, including interest (which interest shall be net of taxes payable), divided by the number
of then outstanding public shares. A public stockholder will have this redemption right regardless of how it votes, or whether it votes,
with respect to the Extension Proposal. Holders of public shares who do not elect to redeem their public shares in connection with the
Extension will retain the right to redeem their public shares in connection with any stockholder vote to approve a proposed business combination,
or if the Company has not consummated a business combination by the Extended Date