Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 1197

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9B
Chunk 1197
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arrants. 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 December 31, 2024, $613,207 is outstanding under the Sponsor Convertible Promissory Note and
$1,650,941 has been borrowed against the 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.

72

Registration
Rights

Pursuant
to a registration rights agreement entered into on February 28, 2022, the holders of the Founder Shares, Private Placement Warrants and
any warrants that may be issued upon conversion of Working Capital Loans (and any Class A ordinary shares issuable upon the exercise
of the Private Placement Warrants and warrants that may be issued upon conversion of the Working Capital Loans) will be entitled to registration
rights. The holders of these securities will be entitled to make up to three demands, excluding short form demands, that the Company
register such securities. In addition, the holders have certain “