Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 105

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 105
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 company may be subject to additional
laws, regulations, interpretations and applications. Compliance with, and monitoring of, the foregoing may be difficult, time consuming
and costly. Those laws and regulations and their interpretation and application may also change from time to time, and those changes
could have a material adverse effect on our business, including our ability to negotiate and complete an initial Business Combination.
A failure to comply with applicable laws or regulations, as interpreted and applied, could have a material adverse effect on our business,
including our ability to negotiate and complete our initial Business Combination.

On
January 24, 2024, the SEC issued final rules (the “2024 SPAC Rules”), effective as of July 1, 2024, that formally adopted
some of the SEC’s proposed rules for SPACs that were released on March 30, 2022. The 2024 SPAC Rules, among other items, impose
additional disclosure requirements in initial public offerings by SPACs and business combination transactions involving SPACs and private
operating companies; amend the financial statement requirements applicable to business combination transactions involving such companies;
update and expand guidance regarding the general use of projections in SEC filings, as well as when projections are disclosed in connection
with proposed business combination transactions; increase the potential liability of certain participants in proposed business combination
transactions; and could impact the extent to which SPACs could become subject to regulation under the Investment Company Act. The 2024
SPAC Rules may materially adversely affect our business, including our ability to negotiate and complete, and the costs associated with,
our initial Business Combination, and results of operations.

There
may be tax consequences to our Business Combination that may adversely affect us.

While
we expect to undertake any Business Combination transaction so as to minimize taxes to us, the target, the acquired business and/or assets,
and the respective shareholders of our Company and target, such Business Combination might not meet the applicable statutory requirements
of a tax-free reorganization in all applicable jurisdictions, or the parties might not obtain the intended tax-free treatment upon a
transfer of shares or assets or other Business Combination transaction. A non-qualifying reorganization could result in the imposition
of substantial taxes on us, the target, the acquired business and/or assets, and the respective shareholders of our Company and target.

The
new 1% U.S. federal excise tax on stock buybacks could be imposed on redemptions of our stock if we were to become a “covered corporation”
in