Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 208

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 208
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 a third party who
executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under our indemnity of the underwriters
of the IPO against certain liabilities, including liabilities under the Securities Act. Moreover, in the event that an executed waiver
is deemed to be unenforceable against a third party, our Sponsor will not be responsible to the extent of any liability for such third-party
claims. We have not independently verified whether our Sponsor has sufficient funds to satisfy their indemnity obligations and believe
that our Sponsor’s only assets are securities of our Company. Our Sponsor may not have sufficient funds available to satisfy those
obligations. We have not asked our Sponsor to reserve for such obligations, and therefore, no funds are currently set aside to cover
any such obligations. As a result, if any such claims were successfully made against the Trust Account, the funds available for our initial
Business Combination and redemptions could be reduced to less than $10.00 per Public Share. In such event, we may not be able to complete
our initial Business Combination, and you would receive such lesser amount per share in connection with any redemption of your Public
Shares. None of our officers or directors will indemnify us for claims by third parties including, without limitation, claims by vendors
and prospective target businesses.

Our
directors may decide not to enforce the indemnification obligations of our Sponsor, resulting in a reduction in the amount of funds in
the Trust Account available for distribution to our Public Shareholders.

In
the event that the proceeds in the Trust Account are reduced below the lesser of (i) $10.00 per Public Share or (ii) such lesser amount
per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in the value of the
trust assets, in each case net of the interest which may be withdrawn to pay taxes, and our Sponsor asserts that it is unable to satisfy
its obligations or that it has no indemnification obligations related to a particular claim, our independent directors would determine
whether to take legal action against our Sponsor to enforce its indemnification obligations. While we currently expect that our independent
directors would take legal action on our behalf against our Sponsor to enforce its indemnification obligations to us, it is possible
that our independent directors in exercising their business judgment may choose not to do so in any particular instance. If our independent
directors choose not to enforce these indemn