Company: PFSA
Filing Date: 2025-06-13
Form Type: 10-Q
Source: 0001213900-25-054386
Chunk: 126

Company: Profusa, Inc.
Filing Date: 2025-06-13
Form: 10-Q
Item: Part I, Item 8
Chunk 126
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 2025, the Company entered into
a securities purchase agreement (the “SPA”) with an institutional investor (the “Investor”). Pursuant to the
SPA, the Investor is expected, subject to the conditions relating to such purchase set forth in the SPA, to purchase from the Company
senior secured convertible promissory notes in an aggregate principal amount of up to $22,222,222 (the “Convertible Notes”)
for a purchase price of up to $20,000,000, after a 10% original issue discount (“OID”).

On May 8, 2025, the Company entered into a non-redemption agreement
(the “Non-Redemption Agreement”) with I-Bankers Securities, Inc. and Dawson James Securities, Inc. (together, the “Investors”),
pursuant to which such Investors agreed that to the extent that redemptions in connection with the vote to approve the Business Combination
reduces the Company’s trust account balance below $1.25 million, the Investors would offer such redeeming shareholders an opportunity
to rescind the redemption of their shares and would instead purchase such shares. Such purchases would be structured in compliance with
the requirements of Rule 14e-5 under the Exchange Act or would otherwise not constitute a tender offer pursuant to
the Exchange Act.

Merger Agreement Amendment and Termination
of Financing

On January 12, 2024, the parties to the Merger
Agreement entered into an Amendment No. 2 to the Merger Agreement pursuant to which the parties agreed to revise the definition of “Milestone
Event III” and such that the Earnout Revenue milestone of $11,864,000 for the fiscal year ended December 31, 2024, was replaced
with a milestone of consummating the Tasly JV (as defined in the amended Merger Agreement) and receipt of the related funding during
the fiscal year ended December 31, 2024. All other aspects of the Merger Agreement were unmodified.

On February 16, 2024, the Company’s Board
of Directors approved and authorized the Company to execute a binding term sheet (“Original term sheet”) between the Company
and Profusa, Inc. (the “Target”) for PIPE funding with Vellar Opportunities Fund Master, Ltd. (“Vellar”). Vellar
agreed to subscribe for 2,500,000 shares of common and/or preferred stock