Company: VMCWF
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023515
Chunk: 24

Company: Valuence Merger Corp. I
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 classification, the warrant issuance costs are required to be recorded at their initial fair value on the date of issuance, and
each balance sheet date thereafter. As the Company’s warrants meet the criteria for equity classification, the Company has accounted
for the warrants as equity classified.

Class
A Ordinary Shares Subject to Possible Redemption

The
Company accounts for its Class A ordinary shares subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing
Liabilities from Equity.” Ordinary shares subject to mandatory redemption are classified as a liability instrument and are measured
at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within
the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control)
are classified in temporary equity. At all other times, ordinary shares are classified as shareholders’ equity (deficit). The Company’s
Public Shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence
of uncertain future events. Accordingly, at September 30, 2025 and December 31, 2024, the Public Shares are presented at redemption value
as temporary equity, outside of the shareholders’ deficit section of the Company’s condensed balance sheets.

In
connection with the May 2023 Meeting, shareholders holding 15,799,245 Class A ordinary shares exercised their right to redeem their shares
for a pro rata portion of the funds in the Trust Account. As a result, approximately $167.8 million (approximately $10.62 per ordinary
share) was removed from the Trust Account to pay such holders and approximately $65.7 million remained in the Trust Account. Following
redemptions, the Company had 6,210,718 Class A ordinary shares subject to redemption outstanding.

In
connection with the June 2024 Meeting, shareholders holding 4,343,316 Class A ordinary shares exercised their right to redeem their shares
for a pro rata portion of the funds in the Trust Account. As a result, approximately $49.9 million (approximately $11.49 per ordinary
share) was removed from the Trust Account to pay such holders. After the satisfaction of such redemptions, the balance in the Company’s
Trust Account was approximately $21.6 million. Following redemptions, the Company had 1,867,402 Class A ordinary shares subject to redemption
outstanding. [As of September 30, 202