Company: PFSA
Filing Date: 2025-02-27
Form Type: PRER14A
Source: 0001213900-25-017608
Chunk: 23

Company: Profusa, Inc.
Filing Date: 2025-02-27
Form: PRER14A
Chunk 23
---
 be an unregistered investment company (including under the subjective test of Section 3(a)(1)(A) of the Investment Company
Act) under the proposed rules issued by the SEC and thus potentially subject to regulation under the Investment Company Act, in January 2024,
we instructed Continental, the trustee with respect to the Trust Account, to liquidate the U.S. government treasury obligations or
money market funds held in the Trust Account and thereafter to hold all funds in the Trust Account in an interest bearing demand deposit
account at a bank until the earlier of the consummation of a Business Combination or the liquidation of the Company. Following such liquidation,
we may receive less interest on the funds held in the Trust Account than we would have if we had not liquidated such assets. As a result,
our public stockholders would receive a lower amount upon any redemption or liquidation of the Company as compared to what they would
have received had the investments not been so liquidated. Because the investment of the proceeds will be restricted to these instruments,
we believe we will meet the requirements for the exemption provided in Rule 3a-1 promulgated under the Investment Company Act. If
we were deemed to be subject to the Investment Company Act, compliance with these additional regulatory burdens would require additional
expenses for which we have not allotted funds and may hinder our ability to consummate a business combination. If we are unable to complete
our initial business combination, our public stockholders may receive only approximately $10.10 per share on the liquidation of our trust
account and our rights and warrants will expire worthless.

We may not be able to complete an initial business combination with a U.S. target company if such initial business combination is subject to U.S. foreign investment regulations and review by a U.S. government entity such as the Committee on Foreign Investment in the United States (CFIUS), or is ultimately prohibited.

None of the members of the Company’s sponsor group is, is controlled
by, or has substantial ties with a foreign person and therefore, we believe, will not be subject to U.S. foreign investment regulations
and review by a U.S. government entity such as the Committee on Foreign Investment in the United States (CFIUS). However, our
initial business combination with a U.S. business may be subject to CFIUS review, the scope of which was expanded by the Foreign
Investment Risk Review Modernization Act of 2018 (“FIRRMA”), to include certain non-passive