Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 236

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 236
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 their affairs
unrelated to our Company. Any such development, including any negative publicity related thereto, may be detrimental to our reputation,
negatively affect our ability to identify and complete an initial Business Combination in a material manner and may have an adverse effect
on the price of our securities.

43

RISKS
RELATING TO OUR SECURITIES

Nasdaq has delisted our securities from trading on its exchange, which
could limit investors’ ability to make transactions in our securities and subject us to additional trading restrictions.

Nasdaq
rule IM-5101-2 requires that a SPAC complete one or more business combinations within 36 months of the effectiveness of its initial
public offering registration statement, which, in our case, was February 28, 2025. We did not complete an initial Business
Combination by that date and so Nasdaq determined to delist our Units, Class A ordinary shares and Public Warrants from trading on
March 11, 2025. Our securities are quoted on an over-the-counter market. As a result, we could face significant material adverse
consequences, including:

    ●
    a
    limited availability of market quotations for our securities;

    ●
    reduced
    liquidity for our securities;

    ●
    a
    determination that our Class A ordinary shares are a “penny stock” which will require brokers trading in our Class A
    ordinary shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading
    market for our securities;

    ●
    a
    limited amount of news and analyst coverage; and

    ●
    a
    decreased ability to issue additional securities or obtain additional financing in the future.

The National Securities Markets Improvement Act of 1996, which is a federal
statute, prevents or preempts the states from regulating the sale of certain securities, which are referred to as “covered securities.”
While our units, Class A Ordinary Shares and public warrants were listed on Nasdaq, our units, Class A Ordinary Shares and public warrants
were considered covered securities. Although the states are preempted from regulating the sale of our securities, the federal statute
does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity, then
the states can regulate or bar the sale of covered securities in a particular case. While we are not aware of a state having used these
powers to prohibit