Profusa Stock Soars—To 12 Cents—On Debt Restructuring

Core Viewpoint - Profusa Inc. experienced a significant increase in stock price following the announcement of debt restructuring and measures to reduce potential shareholder dilution, leading to speculative buying in the digital health sector [1]. Debt Restructuring - The primary catalyst for the stock rally was Profusa's decision to restructure its senior secured convertible notes, raising the conversion floor price from $0.10 to $0.35 to stabilize its balance sheet [2]. - By increasing the conversion floor, the company aims to limit new equity issuance at low prices, thereby protecting shareholders from substantial dilution, which is viewed as a positive signal for investors [3]. - Profusa also removed mandatory cash and equity amortization payments that were set to begin in early 2026, providing essential relief for its cash flow [3]. Market Context and Risks - Despite the recent surge, Profusa remains a high-risk micro-cap stock, with its price still significantly lower than its 52-week high of $2.40, as reported by Benzinga Pro [4]. - The stock was noted to be up 73% at $0.11 as it approached the closing bell on Tuesday, indicating a volatile trading environment [4].