Profusa Issues $714K Convertible Note and Exchanges $6.1M Debt for Preferred Stock

summarizeSummary

Profusa raised $650K via a new convertible note and exchanged $6.1M of existing debt for preferred stock, providing liquidity but adding dilution and debt obligations.

check_boxKey Events · Financing and Capital Events · PFSA

• New Convertible Note Issued

  Profusa issued a $714,285.72 senior secured convertible note to Ascent Partners Fund LLC for $650,000 cash, with 7% interest and a conversion price of $1.07 per share.

• Debt Exchange Agreement

  The company agreed to exchange $6,137,958.66 of existing notes for Series A Non-Voting Convertible Preferred Stock at an effective conversion price of $4.28 per share, tied to the G3 Vision Labs option closing.

• Warrant Exercise Price Reduced

  Amendment No. 5 reduced the exercise price of a warrant issued to Ascent on April 20, 2026, to $1.07 per share, subject to further adjustment.

• Mandatory Prepayment Obligation

  The new note requires a mandatory prepayment of 33% of net proceeds from any subsequent offering, and monthly amortization payments begin December 1, 2026.

auto_awesomeAnalysis · PFSA · Industrial Applications And Services

Profusa raised $650,000 in cash through a new senior secured convertible note with a 7% interest rate and a conversion price of $1.07 per share, while simultaneously restructuring $6.1 million of existing debt into preferred stock at an effective conversion price of $4.28 per share. The new note carries an original issue discount, monthly amortization starting December 2026, and a mandatory prepayment of 33% of net proceeds from any future offering. The exchange agreement is tied to the closing of the G3 Vision Labs option, and the preferred stock automatically converts to common stock shortly after issuance. Given the company's going concern doubts and cash balance of only $0.7 million as of the last 10-Q, this financing provides near-term liquidity but adds significant dilution and debt service obligations.