Company: PFSA
Filing Date: 2025-05-13
Form Type: S-4/A
Source: 0001213900-25-042224
Chunk: 273

Company: Profusa, Inc.
Filing Date: 2025-05-13
Form: S-4/A
Chunk 273
---
 needs. In exchange 133 for entering into the $10 million Convertible Note, the Combined Company would be obligated to enter into the $150 million ELOC. Specifically, negotiations included the desire of the Profusa and NorthView management teams to improve the cash at close (to $3 million) rather than $1 million (with $2 million held in escrow subject to trading limitations) to assist in meeting our minimum cash requirements. The ELOC term sheet provided for an up to $150 million ELOC for New Profusa Common Stock (limited to no more than 19.9% of the then outstanding New Profusa Common Stock) subject to definitive documentation with Arena Business Solutions Global SPC II, Ltd. (Arena) was signed by Profusa and NorthView requiring a Deal Deposit of $25,000. The term of the ELOC would be for 36 months. As part of this agreement, it was anticipated that consideration in the form of a $3,500,000 fee would be payable to Arena by New Profusa within thirty calendar days of the closing of the Business Combination in the case of a cash settlement, or promptly after the effectiveness of a registration statement filed with the SEC following the Closing. In negotiations related to the draft terms of the ELOC, the Company sought to either obtain a lower fee consideration at close or to potentially trade a higher fee for more cash at close and to also target a floor price of approximately $4 per share to limit the dilution that could be caused by the ELOC Commitment Fee. After robust discussions, the basic terms of the term sheets previously offered by Arena did not change significantly. It was agreed that New Profusa would have the option to pay the Commitment Fee in cash, stock, or any mix of cash and stock; however, it was expected that New Profusa would settle the Commitment Fee in cash as New Profusa does not anticipate filing a registration statement prior to the due date of the Commitment Fee. The Company then determined at the time that a $10 million Convertible Note, that could provide $9 million in near -termcash, and a $150 million ELOC to provide mid -termcash as needed, could be an appropriate cash management strategy. The Company also considered the appropriateness of a $3.5 million commitment fee for a $150 million ELOC over three years and determined the fee to be not outside of market conditions at the time. On September 11, 2023, the Company signed a non -binding