Company: VMCWF
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023515
Chunk: 82

Company: Valuence Merger Corp. I
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 82
---
 Promissory Note”) in the principal amount
of up to $613,207 to
the Sponsor for working capital requirements and payment of certain expenses in connection the Company’s Business Combination.
The Sponsor Convertible Promissory Note is non-interest bearing and payable on the earlier of (i)
the date of the Business Combination or (ii) the winding up of the Company. At any time prior to payment in full of the principal
balance of the Sponsor Convertible Promissory Note, the Sponsor may elect to convert all or any portion of the unpaid principal
balance into the Conversion Warrants, equal to (x) the portion of the principal amount of the Sponsor Convertible Promissory Note
being converted, divided by (y) $1.50, rounded up to the nearest whole number of warrants. The
Sponsor Convertible Promissory Note was accounted for using the bifurcation method and was determined that the conversion feature
had no value and was recorded at par value. As of September 30, 2025 and December 31, 2024, $613,207 was
outstanding under the Sponsor Convertible Promissory Note.

On
June 4, 2024, the Company issued the June 2024 Note to the Sponsor, in the principal amount of $300,000. The June 2024 Note bears no
interest and is repayable in full upon the earlier of (a) the date of the consummation of the Company’s initial Business Combination
or (b) the date of the Company’s liquidation. If the Company does not consummate an initial Business Combination by the Maturity
Date, the June 2024 Note will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise
forgiven. Upon maturity, the outstanding principal balance of the June 2024 Note may be converted into warrants, at a price of $1.50
per warrant, at the option of the Sponsor, provided that the maximum aggregate conversion of all convertible notes issued to the Sponsor,
or its affiliates may not exceed $1.5 million. Such warrants will have terms identical to the Private Placement Warrants. The June 2024
Note was accounted for using the bifurcation method and it was determined that the conversion feature had no value, and the June 2024
Note was recorded at par value. On June 4, 2024, the Company borrowed $300,000 under the June