Profusa Inc. said it converted $4.57 million of debt into 4,271,298 shares of Series A Convertible Preferred Stock as part of a broader restructuring plan tied to its pending acquisition of G3 Vision Labs Inc. and its subsidiaries.
The biotechnology company, based in Berkeley, California, also executed a 4:1 reverse stock split that became effective Monday, moves aimed at bolstering its financial position ahead of Nasdaq’s minimum listing standards. Profusa simultaneously borrowed $650,000 under its existing note agreement to support near-term working capital needs.
The debt conversion follows agreements with holders of $10.7 million in Series A Convertible Exchange obligations, with the $4.57 million portion converted into preferred shares. Profusa projected stockholders’ equity of $28.4 million by July 31, 2026, while reporting a total stockholders’ deficit of $27.1 million as of June 30, 2026.
Financial results for the quarter ended June 30, 2026, showed cash on hand at $719,000, total assets of $1.0 million, and total liabilities of $28.2 million. The company reported a net loss of $8.8 million for the three-month period, up from a $2.3 million loss in the same quarter of 2025, and a $12.2 million net loss for the six months ended June 30, compared with $5.1 million in the prior-year period.
G3 Vision Labs operates CLIA-certified laboratories providing diagnostic testing services to addiction treatment, pain management, and behavioral health providers. Auditors for G3 are finalizing financial statements for 2024 and 2025, with audited results expected for most entities by the end of August and for the entire business by mid-September.
