Company: PFSA
Filing Date: 2025-03-07
Form Type: DEF 14A
Source: 0001213900-25-021270
Chunk: 28

Company: Profusa, Inc.
Filing Date: 2025-03-07
Form: DEF 14A
Chunk 28
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 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.

Delays in causing extension payments to be funded to the Trust Account may contradict our governing documents.

Pursuant to the terms of the Trust Agreement, the
parties to the Trust Agreement have agreed to commence liquidation of the Trust Account during the Company’s business combination
period, as extended pursuant to the terms of the Charter. The monthly extension payments were and are required to be made in order to
extend the business combination period monthly, and the failure to complete the liquidation of our Trust Account following a late payment
may violate the terms of the Trust Agreement. As of the date of this Proxy Statement, the Board has not taken steps to commence liquidation
of the Trust Account, nor discussed the commencement of the liquidation with the Trustee, however, the Company has caused additional
amounts to be contributed to the Trust Account to offset any unearned interest as a result of any late payments. Any violation of the
Trust Agreement could be the basis for a shareholder lawsuit against us. As of the date of this Proxy Statement, the Board has not taken
steps towards the trust liquidation and does not plan to do so unless our shareholders do not vote to extend our life pursuant to the
Extension. In the event that the Extension is approved, those shareholders electing redemption at the Special Meeting will have their
shares redeemed promptly after the meeting.

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