Company: PFSA
Filing Date: 2025-04-28
Form Type: S-4/A
Source: 0001213900-25-035718
Chunk: 272

Company: Profusa, Inc.
Filing Date: 2025-04-28
Form: S-4/A
Chunk 272
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 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 -bindingTerm Sheet for the $10 million ($9 million net of OID) Convertible Note and $150 million ELOC with Arena with the general terms as noted above. In subsequent discussions and due diligence, the Company considered the cash contributions from the APAC Joint Venture, cash that that could be generated through the trust or private placement investments and Profusa’s bridge loan and decided to terminate the $10 million Convertible Note discussions and instead consider a $2.0 million term loan (the “Term Loan”) from Arena with the $150 million ELOC. The Company and Arena had further discussions and it was determined that Arena could provide a $2 million, 6 -monthTerm Loan at 10% OID and 10% interest. On December 2, 2023, the Company made a Deal Deposit payment to Arena for legal and due diligence expense related to drafting the Term Loan and ELOC agreements. Discussions with Arena regarding the details of the definitive agreement and further due diligence continued. On December 6, 2023, the Company received draft term sheet for the $2.0