Company: PFSA
Filing Date: 2025-05-09
Form Type: S-4/A
Source: 0001213900-25-041151
Chunk: 272

Company: Profusa, Inc.
Filing Date: 2025-05-09
Form: S-4/A
Chunk 272
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, there were several matters that could not be resolved satisfactorily. The unresolved matters included the proposed size of $100 million for the convertible note was beyond the anticipated needs of the combined company and was expected to be too costly; the lack of clarity on available capital proceeds to be available at the time of Closing; the lack of certainty of funding of the 3 rdand 4 thtranches; and the proposed term of the proposed Redemption Recapture Agreement of seven years was determined to be too long for the combined company’s needs. The general inability to find a mutual resolution to these matters resulted in our decision not to proceed with further discussion of the transactions. HCW and I -Bankersidentified potential SPAC investors whose terms were reasonable and favorable to the specific de -SPACingplans and capital needs of NorthView and their target, Profusa. In July of 2023, HCW introduced NorthView and Profusa to Arena Investors, LP (“Arena”) as a potential source of financing for the Business Combination and an NDA was entered into. Profusa and Northview chose at that time to pursue a possible financing facility with Arena based on the NorthView and Profusa’s advisors’ previous experience and familiarity with Arena as an investor. On August 15, 2023, a representative of HCW reviewed Arena’s draft term sheets for a possible $10 million ($9 million net of OID) Convertible Note and an up to $150 million Equity Line of Credit (“ELOC”) with management of Profusa. On August 17, 2023, Profusa, NorthView, and representatives of HCW had a virtual meeting with representatives of Arena to better understand the proposed terms of both the draft Convertible Note as well as the draft ELOC. On August 24, 2023, representatives of NorthView, Profusa and HCW met via Zoom call to provide comments and seek clarity on the terms of the Arena term sheets. Discussions between the parties related to the $10 million Convertible Note included general desired financing terms, timing of commitment fee payment, legal expenses, timing of funding, availability of funds and instrument structure and restrictions. In general, NorthView and Profusa considered the near -termworking capital cash requirements of validating product, mid -termcash requirements of scaling operations, the potential dilutive effect of a large near -termcapital raise and having an instrument in place to match future monthly cash needs. In exchange 133 for entering into the $10 million Convertible Note, the Combined Company would