Company: PFSA
Filing Date: 2025-04-03
Form Type: S-4/A
Source: 0001213900-25-028544
Chunk: 275

Company: Profusa, Inc.
Filing Date: 2025-04-03
Form: S-4/A
Chunk 275
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ellar notified NorthView that it would be terminating the binding term sheet and on September 25, 2024, Vellar sent NorthView a termination letter thus terminating the Amended and Restated Binding Principal Terms and Conditions with NorthView and Profusa. In late July of 2024, Profusa and NorthView discussed that the closing of the Merger transaction was taking longer than expected, and that as a result, Profusa would need to raise additional bridge financing and working capital loans prior to the consummation of the Merger in order to fund its operations (For reference, the Profusa Bridge Loan was commenced in November 2023 and had a conversion price of $2.22). NorthView acknowledged that such financings were necessary for Profusa to continue its ongoing operations and that the financings provided a benefit to the transaction. In early August, Profusa negotiated terms with an anchor investor for a new Senior Secured Convertible Note, which had a conversion price of $0.50. On or about August 1, 2024, and subsequent to Profusa’s new Senior Secured Convertible Note, Profusa discussed with NorthView that there was an original bridge noteholder, who was frustrated with the delay in consummating the Merger and the improved terms of the new Senior Secured Convertible Note. Profusa suggested that the parties seek another investor to purchase the bridge note from the noteholder to relieve tensions in Profusa’s investor base. Both parties acknowledged that Profusa may be required to issue incentive shares to any investor who would consider buying out such noteholder. On January 8, 2025, Profusa and NorthView continued discussions regarding a potential amendment to the Merger Agreement to address Profusa’s updated projections and the additional merger consideration in connection with Profusa’s bridge financings. Additionally, the Outside Date of the Merger Agreement had passed, and the agreement was thus terminable without cause. Based on discussions with potential investors to purchase the bridge note from the noteholder, Profusa expected that it would need to issue shares equivalent to approximately 2.9 million shares of Merger Consideration to accommodate such a purchase and meet the investor’s conversion price requirements. Ascent Financing Background Following discussions between Jack Stover and an institutional investor, on July 3, 2024, the institutional investor presented a draft term sheet for the purchase up to $11.0 million of convertible promissory notes, which contemplated warrant coverage on the note purchase. Profusa,