Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 70

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 70
---
    ●
    our
    immediate payment of all principal and accrued interest, if any, if the debt security is payable on demand;

    ●
    our
    inability to obtain necessary additional financing if the debt security contains covenants restricting our ability to obtain such
    financing while the debt security is outstanding;

    ●
    our
    inability to pay dividends on our ordinary shares;

    ●
    using
    a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends
    on our ordinary shares if declared, expenses, capital expenditures, acquisitions and other general corporate purposes;

    ●
    limitations
    on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate;

    ●
    increased
    vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation;
    and

    ●
    limitations
    on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution
    of our strategy and other purposes and other disadvantages compared to our competitors who have less debt.

We
may only be able to complete one Business Combination with the proceeds of the IPO and the sale of the Private Placement Warrants, which
will cause us to be solely dependent on a single business which may have a limited number of products or services. This lack of diversification
may negatively impact our operations and profitability.

Of
the net proceeds from the IPO and the sale of the Private Placement Warrants, following redemptions made in connection with our extensions
and Contributions and New Contributions, $22,206,637 will be available to complete our Business Combination and pay related fees and
expenses (which includes $8,105,480 for the payment of deferred underwriting commissions).

37

We
may effectuate our initial Business Combination with a single target business or multiple target businesses simultaneously or within
a short period of time. However, we may not be able to effectuate our initial Business Combination with more than one target business
because of various factors, including the existence of complex accounting issues and the requirement that we prepare and file pro forma
financial statements with the SEC that present operating results and the financial condition of several target businesses as if they
had been operated on a combined basis. By completing our initial Business Combination with only a single entity our lack of diversification
may subject us to numerous economic, competitive and regulatory risks. Further, we