Company: VMCWF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010983
Chunk: 60

Company: Valuence Merger Corp. I
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 60
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 the Board of Directors, extended the Combination Period
to June 3, 2024 and caused to be deposited an additional $1,680,000 into the Company’s Trust Account.

On
June 5, 2023, in connection with the required Contributions for monthly extensions to the Combination Period and for working capital
purposes, the Company issued a non-interest bearing, unsecured convertible promissory note to the Sponsor in the aggregate principal
amount of $613,207 (the “Sponsor Convertible Promissory Note”) and to Valuence Partners LP in the aggregate principal amount
of $1,650,941 (the “VP Convertible Promissory Note”, and together with the Sponsor Convertible Promissory Note, the “Contribution
Notes”). The Contribution Notes will be repayable by the Company upon the earlier of (i) consummation of a Business Combination
and (ii) the date of the liquidation of the Company (the “Maturity Date”). Up to an aggregate of $1.5 million of the Contribution
Notes and any other convertible notes issued to the Sponsor or its affiliates may be converted into warrants of the post-Business Combination
entity at a price of $1.50 per warrant at the option of the payees, which shall have terms identical to the Private Placement Warrants
(the “Conversion Warrants”). If the Company does not consummate a Business Combination by the end of the Combination Period,
the outstanding principal amount of the Contribution Notes will be repaid only from funds held outside of the Trust Account or will be
forfeited, eliminated or otherwise forgiven. The Contribution Notes were accounted for using the bifurcation method and it was determined
that the conversion feature had no value and the Contribution Notes were recorded at par value. As of each of March 31, 2025 and December
31, 2024, $613,207 was outstanding under the Sponsor Convertible Promissory Note and $1,650,941 has been borrowed against VP Convertible
Promissory Note.

On
June 14, 2023, the Listing Qualifications Department of the Nasdaq Stock Market, LLC (“Nasdaq”) notified the Company that
the Company was not in compliance with Nasdaq’s minimum $1,000,000 aggregate market value of warrants requirement set forth in
Listing Rule 5452(b)(C).

On
March 1, 2024, the Company entered into Amendment No. 1 (the