Prospectuses and communications, business combinations



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Filed by Lakeshore Acquisition I Corp.



Pursuant to Rule 425 under the Securities
Act of 1933



and deemed filed pursuant to Rule 14a-12



of the Securities Exchange Act of 1934



Subject Company: Lakeshore Acquisition I Corp.



Commission File No. 001-40474



Date: September 22, 2022





Nick Clayton (

00:02

):





Hello, and welcome to another SPACInsider podcast, where we bring an
independent eye, interviewing the targets of SPAC transactions and their SPAC partners. I'm Nick Clayton, and this week, my colleague
Marlena Haddad and I will be speaking with Len Liptak, CEO of ProSomnus Sleep Technologies. It announced a $168 million combination with
Lakeshore Acquisition I Corp. in May. ProSomnus has developed a new device to treat obstructive sleep apnea that disrupts the need for
millions of sufferers to be connected to ventilators at night. Len explains how the COVID-19 pandemic increased the need for sleep apnea
treatments and how this deal will help power its continued commercialization. Lakeshore I CEO and chairman Bill Chen joins to tell us
why it was important that ProSomnus is already generating revenue and how SPACs can still compete for quality targets in the current market.
Take a listen.





Nick Clayton (

00:51

):





And so starting with you, Len, you've been looking at dental solutions
for many years, dating back to your time at 3M and MicroDental Laboratories. So at what point in that journey did sleep apnea really stand
out as a major underserved market and an opportunity for disruption?





Len Liptak (

01:12

):





When I worked at 3M, orthodontics was one of the areas I worked on,
and one of the things orthodontics do take into consideration when building a treatment plan is the airway. So that was where I got some
of the initial seeds planted. Then while working at MicroDental Laboratories, a growing number of dental providers would come up to us
and say, "There's this thing called sleep apnea," and a growing number of physicians are recruiting dentists to come in and
try to help them, particularly for patients who were failing their CPAP solutions.





Len Liptak (

01:40

):





And so we noted that as interesting, but then also did follow-up questions
in surveys, interviews, and focus groups to find out what types of devices were they using, were there any unmet needs, then, of course,
the obvious question of do we have any unique knowhow to bring to bear, to try to improve the situation, and through a culmination of
that process, we really got this idea of yeah, there are some unmet needs, and through our shared experiences, myself, the other co-founders,
we felt like we had some unique knowhow that we could bring to bear that would result in better solutions for patients, dental providers,
and physicians, and so those were kind of the seeds that all came together to create ProSomnus.









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Nick Clayton (

02:21

):





And for Bill, we've seen a lot of changes in the market since you IPO'd
Lakeshore I in June 2021. And so, how wide of a net did you cast in your initial target search? And did you wind up changing your criteria
at all as the market condition has developed?





Bill Chen (

02:35

):





It is true, the market has big change since the middle of last year
until this year. There was a big drop. Equity investment was very difficult in the market. However, in terms of the target selection,
our criteria, eventually, has not changed. We are looking for subsector leader, a company with higher entry barrier, higher gross margin,
higher growth rate, good management team. Those principles have not changed.





Marlena Haddad (

03:02

):





And anyone who looks at ProSomnus's solution as compared to CPAP machines,
which make up a lot of the market, can see the attraction from a patient's perspective. But even beyond comfort, what would you say are
some of the other practical difficulties with CPAP that ProSomnus is able to avoid?





Len Liptak (

03:21

):





Yeah, great question, Marlena. The biggest issue is what is lifestyle.
I don't know about you guys, but for me, I have a bedtime routine, right? So I like to read a book, I like to check out some stuff on
my phone, I like to watch a Seinfeld episode. It's difficult to do that with a CPAP mask on, difficult to get up in the middle of the
night and go to the bathroom with a CPAP mask on or to get up in the middle of the night and get a glass of water. And so what people
really find inviting about our device and why there's a strong preference for our device is because people can have a normal bedtime routine,
a normal lifestyle around sleep and sleep hygiene. It's easy to take with you on a trip, easy to keep clean. You can have a communication
with your bed partner with it still in. People can still talk very clearly.





Len Liptak (

04:00

):





So it has more of a conformance quality element to it that people find
is helpful because we don't just fall asleep the moment our head hits the pillow, right? And that's where I think our device really fits
into people's lifestyle and why they prefer it.





Marlena Haddad (

04:15

):





So on ProSomnus's side, it feels like precision is important to making
sure your devices work and conform tightly to the patient's mouth. So what are some of the sizing and material challenges that you deal
with in producing each set?





Len Liptak (

04:27

):





Yeah, well, I think at a higher level, precision medicine is a
concept that is revolutionized in the standard of care across all fields of medicine, and this is prevalent also in what we do with
sleep medicine. Our devices are designed to perfectly match the patient's teeth as well as perfectly match the jaw prescription for
the patient, and we do that with less than 0.3 millimeters of precision, which allows us to put the jaw in the correct position to
open the airway but not over-advance the jaw so it's uncomfortable or not under-advance the jaw so that the treatment isn't as
efficacious. And we've built an entire digital manufacturing process around doing this. It allows us to take advantage of
high-performance, medical-grade materials and produce a product that matches the prescription, treatment plan, and the anatomy for
that patient with a high degree of precision. All of that has been associated in clinical studies with improved outcomes, fewer side
effects, and greater patient preference.









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Nick Clayton (

05:22

):





Great. And unfortunately, over the past three years, I think a lot
of us laymen, for the first time, heard the term comorbidities.





Len Liptak (

05:28

):





Yeah.





Nick Clayton (

05:28

):





But it's a really important thing in terms of what you're doing, because
sleep apnea, as an ailment that a lot of people don't even know that they have, is contributing to a lot of other comorbidities, which
can make you a risk for all sorts of other diseases, more severe, including COVID, and I'm interested in, did you see an increase in demand
during the pandemic? And on that kind of education issue, what have you been seeing in terms of people becoming more and more aware of
sleep apnea recently?





Len Liptak (

05:52

):





Yeah, fabulous question. What people don't really appreciate is that
OSA is a highly prevalent disease. A billion people worldwide have it, it was 70 million people in the United States alone have it, 90%
are undiagnosed, and as you say, if left untreated, it's associated with very severe comorbidities, from cardiovascular disease to increased
incident of stroke, so yeah, not to mention the economic cost associated with not treating those comorbidities, not treating with the
OSA.





Len Liptak (

06:17

):





So yeah, during COVID, I think like everyone, the first two months
of COVID, the whole world stopped, but then our business bounced back really quickly and we actually demonstrated growth through COVID
for all the reasons you mentioned. There was an understanding that better sleep was a great way to boost your immune system and prevent
getting COVID in the first place. There are also concerns about ventilation and what ventilation might do in terms of distributing the
COVID bacteria. And then also, there was a shortage of supply of CPAP, chips, and ventilation-related technologies because, rightfully,
they were being used for people who needed acute care. So we did see an increased demand in devices during COVID for those reasons.





Nick Clayton (

06:58

):





Yeah, totally. And I want to get into some of those specifics of the
product as well. For anyone who hasn't, again, seen the difference, as we mentioned, it's the difference between having a ventilator mask
on your face all night connected to a machine to wearing something that I think people would recognize as being similar to the Invisalign
orthodontic realignment kind of mouthguards that are clear, you put them in there.





Nick Clayton (

07:18

):





So your EVO, your main product, is not your only one. And so, can you
talk a little bit about what the IA, CA, PH versions, who those are designed for? What do you expect the remote monitoring version that
you're working on to bring from both a care standpoint and in terms of revenue stream?









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Len Liptak (

07:32

):





So, yeah, EVO is our flagship product. That's the main one that people
prescribe. But there are people who have certain conditions or fall into certain categories where they may need some of these different
line extensions that you mentioned.





Len Liptak (

07:45

):





For example, our PH device is a Medicare-approved device. Medicare
has some specific rule sets around what the device needs to have in order for it to be reimbursed under Medicare. So the PH is our Medicare
derivative. It meets Medicare coding, but the good news is it's available to Medicare beneficiaries around the country.





Len Liptak (

08:04

):





Our CA device is for certain patients who might have TMJ jaw pain issues,
where they need what's considered asymmetrical advancement, where they have to move one side of their jaw a little differently than the
others. So the CA has these little adjustment mechanisms on the side that allow the provider to move the jaw asymmetrically so that the
patient can be in good stable treatment for their sleep apnea while reducing the risk of triggering any jaw pain.





Len Liptak (

08:31

):





So those are some of the main variants that we have, the differences,
and what they're for.





Nick Clayton (

08:36

):





And so I just think it's interesting because we're going to get into
some of the other solutions that are out there, too, but for a problem that is this prevalent and that is dealt with what is such a large
machine in terms of the legacy offering that what your approach does seems very simple in terms of it just holding the jaw, it has certain
positions so that people do not wake themselves up by their mouth opening and breathing through their mouth in the middle of the night.
It's just surprising that that is actually effective enough.





Len Liptak (

09:00

):





Yeah. We've been thrilled with the results of some of our recent clinical
studies. We just had one which was published in March of 2022 in the Journal of Clinical Sleep Medicine, one of the frontline journals
in our field, and it showed that our devices demonstrated 94% efficacy for patients with mild and moderate OSA. So we've been very pleased
with the efficacy results as well as the adherence results, because, as we know, adherence is one of the things that really limits CPAP,
right? CPAP is highly efficacious if some


The above information was disclosed in a filing to the SEC. To see the filing, click here.

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