Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 676

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 676
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 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 December 31, 2024, $613,207 is outstanding
under the Sponsor Convertible Promissory Note and $1,650,941 has been borrowed against VP 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. On June 4,
2024, the Company borrowed $300,000 under the June 2024 Note, which was outstanding as of December 31, 2024.

Delisting from Nasdaq

On March 4, 2025, the Company
received a notice from the staff of the Listing Qualifications Department of Nasdaq stating that because the Company had not completed
an IPO within 36 months of the effective date of its IPO registration statement, it was not in compliance with Nasdaq listing rule IM
5101-2, and was therefore subject to delisting. Trading in the Company’s securities on Nasdaq was suspended at the opening of business
on March 11, 2025, and trading of the Company’s securities on the over-the-counter market commenced shortly thereafter.

Results
of Operations

As
of December 31, 202