Company: PFSA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076861
Chunk: 31

Company: Profusa, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 the Company sends the notice of redemption to the warrant holders.

If the Company calls the warrants for redemption
as described above, management will have the option to require all holders that wish to exercise warrants to do so on a “cashless
basis.” In determining whether to require all holders to exercise their warrants on a “cashless basis,” management
will consider, among other factors, the Company’s cash position, the number of warrants that are outstanding and the dilutive effect
on the stockholders of issuing the maximum number of shares of common stock issuable upon the exercise of the warrants. In such event,
each holder would pay the exercise price by surrendering the warrants for that number of shares of common stock equal to the quotient
obtained by dividing (x) the product of the number of shares of common stock underlying the warrants, multiplied by the difference
between the exercise price of the warrants and the “fair market value” (defined below) by (y) the fair market value.
The “fair market value” shall mean the average reported last sale price of the common stock for the 10 trading days ending
on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants.

Note 4 – Private Placement

The Company’s Sponsor, I-Bankers and Dawson
James have purchased an aggregate of 7,347,500 Private Placement Warrants (which included 697,500 Private Placement Warrants issued pursuant
to the full exercise of the over-allotment option) at a price of $1.00 per warrant ($7,347,500 in the aggregate) in a private placement
that closed simultaneously with the closing of the IPO. Of such amount, 5,162,500 Private Placement Warrants were purchased by the Sponsor
and 2,185,000 Private Placement Warrants were purchased by I-Bankers and Dawson James.

The Private Placement Warrants are identical
to the warrants included in the units sold in the IPO, except that the Private Placement Warrants: (i) will not be redeemable by the
Company and (ii) may be exercised for cash or on a cashless basis, in each case so long as they are held by the initial purchasers or
any of their permitted transferees. If the Private Placement Warrants are held by holders other than the initial purchasers or any of
their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by the