Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 256

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 256
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 shareholders may not be treated impartially and equally as a result
of poor management practices, asset shifting, conglomerate structures that result in preferential treatment to some parts of the overall
company, and cronyism. The lack of transparency and ambiguity in the regulatory process also may result in inadequate credit evaluation
and weakness that may precipitate or encourage financial crisis. In our evaluation of a Business Combination we will have to evaluate
the corporate governance of a target and the business environment, and in accordance with United States laws for reporting companies
take steps to implement practices that will cause compliance with all applicable rules and accounting practices. Notwithstanding these
intended efforts, there may be endemic practices and local laws that could add risk to an investment we ultimately make and that result
in an adverse effect on our operations and financial results.

53

If
the government of the country in which we effect our initial Business Combination finds that the agreements we entered into to acquire
control of a target business through contractual arrangements with one or more operating businesses do not comply with local governmental
restrictions on foreign investment, or if these regulations or the interpretation of existing regulations change in the future, we could
be subject to significant penalties or be forced to relinquish our interests in those operations.

Some
countries in Asia currently prohibit and/or restrict foreign ownership in certain “important industries,” including technology,
entertainment and others. There are uncertainties under certain regulations whether obtaining a majority interest through contractual
arrangements will comply with regulations prohibiting or restricting foreign ownership in certain industries. In addition, there can
be restrictions on the foreign ownership of businesses that are determined from time to time to be in “important industries”
that may affect the national economic security or those having “famous brand names” or “well-established brand names.”

If
we or any of our potential future target businesses are found to be in violation of any existing or future local laws or regulations
(for example, if we are deemed to be holding equity interests in certain of our affiliated entities in which direct foreign ownership
is prohibited), the relevant regulatory authorities might have the discretion to:

    ●
    revoke
    the business and operating licenses of the potential future target business;

    ●
    confiscate
    relevant income and impose fines and other penalties;

    ●
    discontinue
    or restrict the operations of the potential future target business;

    ●
    require
    us or the potential future target business to restructure the relevant ownership structure or operations;

    ●
    restrict