Company: PFSA
Filing Date: 2025-02-18
Form Type: PRE 14A
Source: 0001213900-25-014919
Chunk: 21

Company: Profusa, Inc.
Filing Date: 2025-02-18
Form: PRE 14A
Chunk 21
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| ● | determination that our shares of common stock are a “penny stock” which will require brokers trading in our shares of                   
 common stock to adhere to more stringent rules and could result in a further reduced level of trading activity in the secondary trading 
 market for our securities;                                                                                                              |

<div align='center'>19</div>

| ● | greater difficulty and cost at being able to satisfy any applicable stock exchange’s initial listing requirements for the post-business combination 
 company;                                                                                                                                            |

| ● | our securities no longer qualifying as “covered securities” under the National Securities Markets Improvement Act of 1996                   
 (“NSMIA”), meaning that sales of our securities would be subject to regulation in each state in which that sale occurs, including           
 in connection with our initial business combination, which may negatively impact our ability to consummate our initial business combination 
 or to otherwise issue additional securities or obtain additional financing in the future and could negatively impact the ability of our     
 security holders to trade, and result in further reduced liquidity and demand for, our securities; and                                      |

| ● | a limited amount of news and analyst coverage. |

Additionally, pursuant to the Merger Agreement with Profusa, one of
the conditions to closing is the listing of our common stock and securities by Nasdaq and the satisfaction of initial listing requirements.
Following the delisting of our securities from the Nasdaq, we may face increased difficulties and uncertainties in meeting the initial
and continued listing requirement of Nasdaq, such as the requirements as to the market value of unrestricted publicly held shares and
market value of listed securities, and therefore face increased uncertainties as to its ability to successfully consummate the business
combination with Profusa or any other target company.

If we are deemed to be an investment company under the Investment Company Act, we may be required to institute burdensome compliance requirements and our activities may be restricted, which may make it difficult for us to complete our business combination.

If we are deemed to be an investment company under the Investment Company
Act, our activities may be restricted, including, without limitation, restrictions on the nature of our investments, and restrictions
on the issuance of our securities, each of which may make it difficult for us to complete our business combination. In addition, we may
have imposed upon us burdensome requirements, including, without limitation, registration as an investment company; adoption of a specific
form of corporate structure; and reporting, record keeping, voting, proxy and disclosure requirements and other rules and regulations.

In order not to be