Company: PFSA
Filing Date: 2025-04-03
Form Type: S-4/A
Source: 0001213900-25-028544
Chunk: 256

Company: Profusa, Inc.
Filing Date: 2025-04-03
Form: S-4/A
Chunk 256
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 the financial projections, which NorthView’s management and board found to be reasonable after detailed review on October12, 2022. The revised financial projections were provided to Marshall & Stevens, who in a report dated October12, 2022 determined that the range of implied value of Profusa, as of December31, 2022 was between $260 million and $331 million based upon the assumptions inherent in the projections and plan. Revised revenue earn -outtargets were based on Profusa’s fiscal 2023 and 2024 revenue projections of $5 million and $73 million, respectively. Management of Profusa and NorthView agreed early on that their mutual goal was to provide Profusa an entry into the public markets at an attractive initial valuation to accomplish their long -termcommercial goals. Pursuant to Amendment No. 1 to the Merger Agreement, the revenue earn -outtargets have been revised based on the Updated Projections, with fiscal 2024 and 2025 revenue projections of $11.9 million and $99.7 million, respectively. 124 •NorthView’s board and management noted that a $155 million valuation, as previously negotiated and included in the LOI, was below the range provided by Marshall & Stevens’ fairness opinion and would result in Profusa effectively raising capital in a “down round” when compared to Profusa’s most recent equity financing of $145 million in 2019. However, based on the uncertainties and a downward trend in the public markets, and the goal of providing value to NorthView’s stockholders, NorthView’s board determined that the previously negotiated valuation of $155 million continued to be reasonable. However, in acknowledgement of the developments in Profusa’s regulatory approval process since its previous round of financing, the parties negotiated an earn out of up to 3,875,000shares, or $38,750,000 assuming a $10share price, for potential aggregate consideration to Profusa shareholders of up to $193,750,000. The Earnout Shares, being equal to one -quarterof the Merger Consideration being paid at Closing, was a mechanism to bridge the difference to a valuation that Profusa thought was reasonable and in the best interest of its shareholders, and which would only be provided upon the achievement of milestones that would provide value to NorthView shareholders and potential investors. NorthView’s board noted that the consideration to be paid to Profusa in connection with the Merger, including the Earnout Shares, was below the range provided by Marshall & Stevens report