Profusa Inc. Partners with Ascent Partners Fund
Profusa Inc., a digital health firm trading on NASDAQ under the ticker PFSA, has made headlines as it partners with Ascent Partners Fund LLC for a substantial funding initiative. This venture, outlined in a Securities Purchase Agreement known as an Equity Line Facility, aims to secure up to $100 million by issuing shares of common stock.
Funding Purpose and Conditions
The proceeds from this arrangement are specifically earmarked for the acquisition of Bitcoin, primarily to service existing debt obligations. However, a crucial condition applies: the firm must maintain a cash balance exceeding $5 million at the time the equity transaction occurs.
Share Issuance Details
As part of this financial agreement, Profusa can offer shares to Ascent at a price calculated as 97% of the lowest Volume Weighted Average Price (VWAP) over the five trading days that follow each issuance event. Moreover, each individual sale through this mechanism is capped at either $5 million or the total of the average daily trading volume from the preceding five days, whichever amount is lesser.
Cash Reserves and Bitcoin Strategy
In the event that Profusa’s cash reserves dip below the $5 million threshold, the initial gross proceeds from the equity sale will be allocated to restore that balance, while any surplus will be directed toward bolstering Bitcoin reserves as part of the company’s core asset strategy. This emphasizes the growing trend of companies integrating cryptocurrency into their financial frameworks.
