Profusa Inc. (NASDAQ:PFSA) shares soared on Tuesday after the company announced the restructuring of its debt and a reduction in potential shareholder dilution, sparking a wave of speculative buying for the digital health company.
- PFSA stock is soaring. See the chart and price action here.
Debt Restructuring
The primary driver behind the rally was Profusa’s decision to restructure its senior secured convertible notes. The company increased the conversion floor price from 10 cents to 35 cents in a move designed to stabilize its balance sheet.
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By raising the floor, the company limits the amount of new equity that can be issued at depressed prices and protects shareholders from massive dilution—a major de-risking signal to investors.
Profusa also eliminated mandatory cash and equity amortization payments, which were originally scheduled to begin in early 2026, providing much-needed breathing room for its cash flow.
Market Context and Risks
Despite Tuesday’s explosive move, Profusa remains a high-risk micro-cap stock. Even with the high-volume rally to the 13-cent range, the stock is down significantly from its 52-week high of $2.40, according to data from Benzinga Pro.
Profusa also faces a Nasdaq non-compliance notice and is navigating a period of extreme volatility.
PFSA Price Action: Profusa shares were up 73% at 11 cents heading into Tuesday’s closing bell, according to data from Benzinga Pro.
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