Company: PFSA
Filing Date: 2025-04-03
Form Type: S-4/A
Source: 0001213900-25-028544
Chunk: 187

Company: Profusa, Inc.
Filing Date: 2025-04-03
Form: S-4/A
Chunk 187
---
 An underwritten offering involves a company engaging underwriters to purchase its shares and resell them to the public. An underwritten offering imposes statutory liability on the underwriters for material misstatements or omissions contained in the registration statement unless they are able to sustain the burden of providing that they did not know and could not reasonably have discovered such material misstatements or omissions. This is referred to as a “due diligence” defense and results in the underwriters undertaking a detailed review of the company’s business, financial condition and results of operations. Going public via a business combination with a SPAC does not involve any underwriters and does not generally necessitate the level of review required to establish a “due diligence” defense as would be customary in an underwritten offering. 83 In addition, going public via a business combination with a SPAC does not involve a book -buildingprocess as is the case in an underwritten public offering. In any underwritten public offering, the initial value of a company is set by investors who indicate the price at which they are prepared to purchase shares from the underwriters. In the case of a SPAC transaction, the value of the company is established by means of negotiations between the target company, the SPAC and, in some cases, other investors who agree to purchase shares at the time of the business combination. The process of establishing the value of a company in a SPAC business combination may be less effective than the book -buildingprocess in an underwritten public offering and also does not reflect events that may have occurred between the date of the Merger Agreement and the closing of the transaction. In addition, underwritten public offerings are frequently oversubscribed resulting in additional potential demand for shares in the aftermarket following the underwritten public offering. There is no such book of demand built up in connection with a SPAC transaction and no underwriters with the responsibility of stabilizing the share price which may result in the share price being harder to sustain after the transaction. Even if NorthView consummates the Business Combination, there is no guarantee that the NorthView Public Warrants will ever be in the money, and they may expire worthless. The exercise price for NorthView Public Warrants is $11.50 per share of NorthView Common Stock. There is no guarantee that the NorthView Public Warrants will ever be in the money prior to their expiration, and as such, the warrants may expire worthless. If NorthView is unable to complete an initial business combination, NorthView’s Public Warrants may expire worthless. The consumm