Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 248

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 248
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 substantially less than
the market value of your Public Warrants. None of the Private Placement Warrants will be redeemable by us.

49

Our
management’s ability to require holders of our Public Warrants to exercise such warrants on a cashless basis will cause holders
to receive fewer Class A ordinary shares upon their exercise of the Public Warrants than they would have received had they been able
to exercise their warrants for cash.

If
we call our Public Warrants for redemption after the redemption criteria described elsewhere in this Annual Report have been satisfied,
our management will have the option to require any holder that wishes to exercise his or her Public Warrants to do so on a “cashless
basis.” If our management chooses to require holders to exercise their Public Warrants on a cashless basis, the number of Class
A ordinary shares received by a holder upon exercise will be fewer than it would have been had such holder exercised his or her warrant
for cash. This will have the effect of reducing the potential “upside” of the holder’s investment in our Company.

Our
warrants and Founder Shares may have an adverse effect on the market price of our Class A ordinary shares and make it more difficult
to effectuate our initial Business Combination.

We
have issued Public Warrants to purchase 10,000,000 of our Class A ordinary shares, at a price of $11.50 per share, as part of the Units
sold in our IPO and, simultaneously with the closing of the IPO, we issued in a private placement an aggregate of 6,666,667 Private Placement
Warrants, each exercisable to purchase one Class A ordinary share at a price of $11.50 per share. Following our IPO, our Initial Shareholders
owned an aggregate of 5,502,490 Founder Shares. As of December 31, 2024, of the 5,502,490 Founder Shares, all but two have been converted
into Class A ordinary shares on a one-for-one basis. In addition, if our Initial Shareholders make any working capital loans, up to $1,500,000
of such loans may be converted into warrants, at the price of $1.50 per warrant at the option of the lender. The Sponsor and its affiliate
have entered into the Contribution Notes in connection with required monthly Contributions into the Trust Account in connection with
extensions of the Combination Period. The Contribution Notes have an aggregate principal amount of up to approximately $2,564,151, and