Company: VMCWF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023470
Chunk: 31

Company: Valuence Merger Corp. I
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 the Company funds as may be required (“Working
Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the
proceeds of the Trust Account released to the Company. In the event that a Business Combination does not close, the Company may use a
portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would
be used to repay the Working Capital Loans. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been
determined and no written agreements exist with respect to such loans. The Working Capital Loans would either be repaid upon consummation
of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans and
any other convertible notes issued by the Company, including the Contribution Notes and the June 2024 Note, may be convertible into warrants
of the post-Business Combination entity at a price of $1.50 per warrant. The warrants would be identical to the Private Placement Warrants.

On
June 5, 2023, the Company issued a promissory note (the “Sponsor Convertible 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 June 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