U.S.-Japan trade pact; Alphabet, Tesla to report - what’s moving markets
Profusa Inc. (PFSA) announced it has entered into a securities purchase agreement with Ascent Partners Fund LLC to establish a $100 million equity line of credit. The digital health company plans to use all net proceeds to purchase Bitcoin as part of a new treasury strategy.
Under the agreement, Profusa can sell shares to Ascent at 97% of the lowest volume-weighted average price over five trading days following each transaction. Individual transactions are capped at the lower of $5 million or 100% of the average daily trading value over the preceding five trading days.
The company will maintain a minimum cash balance of $5 million before allocating proceeds to Bitcoin purchases. If the cash balance falls below this threshold at the time of any transaction, funds will first restore the minimum balance before purchasing Bitcoin, which will serve as the primary treasury reserve asset.
The equity line is subject to execution of definitive agreements and customary closing conditions. Share issuances under the agreement will be limited to 19.9% of outstanding common stock until shareholders approve the full amount. Profusa will also issue cashless warrants to purchase 900,000 shares at $0.01 per share to Ascent.
"In an era of accelerating monetary debasement, holding Bitcoin on our balance sheet represents a strategic move to safeguard shareholder value," said Ben Hwang, Profusa’s chairman and CEO.
The company expects to begin Bitcoin purchases this week and will disclose its Bitcoin holdings quarterly in financial reports. Profusa develops tissue-integrated sensors for continuous monitoring of biochemical data for medical applications.