Company: PFSA
Filing Date: 2025-02-12
Form Type: S-4/A
Source: 0001213900-25-012354
Chunk: 203

Company: Profusa, Inc.
Filing Date: 2025-02-12
Form: S-4/A
Chunk 203
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 were to cease coverage of New Profusa or fail to regularly publish reports on it, New Profusa could lose visibility in the financial markets, which in turn could cause its share price or trading volume to decline. 91 Securities of special purpose acquisition companies that have engaged in a business combination transaction, such as the Business Combination, may experience a material decline in price relative to the share price of the special purpose acquisition company prior to such business combination transaction. As with most initial public offerings of special purpose acquisition companies in recent years, NorthView issued public shares for $10.00 per share upon the closing of the IPO. As with other special purpose acquisition companies, the $10.00 per share price reflected each public share having a right to redeem such share for a pro rata portion of the proceeds held in the Trust Account, which is expected to equal approximately $11.[] per share prior to the Closing. Following the Closing, the outstanding shares of New Profusa Common Stock will no longer have any such redemption right and will be solely dependent upon the fundamental value of New Profusa, which, like the securities of other companies formed through business combination transactions with special purpose acquisition companies in recent years, may be significantly less than $10.00 per share. Following the consummation of the Business Combination, the value of the New Profusa Common Stock will be affected by many factors, including but not limited to (i) the dilution caused by existence, exercise and/or conversion of the NorthView Warrants, (ii) significant legal, financial advisor, accounting, banking and consulting fees, fees relating to regulatory filings and notices, SEC filing fees, printing and mailing fees and other costs associated with the Business Combination, and (iii) the dilution caused by any equity issued in connection with the Financings. In addition, in connection with the Profusa bridge financing and NorthView’s working capital financings, investors will be issued shares of which reduce their costs basis to be equivalent to $2.22 per share of New Profusa Common Stock, which is substantially below the redemption price. This incentive structure could also negatively impact the value of the New Profusa Common Stock. The proposed PIPE Convertible Notes and conversion of the Convertible Bridge Loan could result in the issuance of shares of New Profusa Common Stock at an effective price substantially below the redemption price, which could have a negative impact on the value of the New Profusa Common Stock after the closing of the Business Combination. Under the PIPE Subscription agreement, the conversion of the PIPE Convertible