Company: PFSA
Filing Date: 2025-05-13
Form Type: S-4/A
Source: 0001213900-25-042224
Chunk: 259

Company: Profusa, Inc.
Filing Date: 2025-05-13
Form: S-4/A
Chunk 259
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9. However, based on the uncertainties and a downward trend in the public markets, and the goal of providing value to NorthView’s stockholders, NorthView’s board determined that the previously negotiated valuation of $155 million continued to be reasonable. However, in acknowledgement of the developments in Profusa’s regulatory approval process since its previous round of financing, the parties negotiated an earn out of up to 3,875,000shares, or $38,750,000 assuming a $10share price, for potential aggregate consideration to Profusa shareholders of up to $193,750,000. The Earnout Shares, being equal to one -quarterof the Merger Consideration being paid at Closing, was 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