Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 81

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 81
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 abilities necessary to profitably
operate such business.

We
may structure a Business Combination so that the post-transaction company in which our Public Shareholders own shares will own less than
100% of the equity interests or assets of a target business, but we will only complete such Business Combination if the post-transaction
company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest
in the target sufficient for us not to be required to register as an investment company under the Investment Company Act. We will not
consider any transaction that does not meet such criteria. Even if the post-transaction company owns 50% or more of the voting securities
of the target, our shareholders prior to the Business Combination may collectively own a minority interest in the post-Business Combination
company, depending on valuations ascribed to the target and us in the Business Combination transaction. For example, we could pursue
a transaction in which we issue a substantial number of new ordinary shares in exchange for all of the issued and outstanding capital
stock, shares or other equity interests of a target. In this case, we would acquire a 100% interest in the target. However, as a result
of the issuance of a substantial number of new ordinary shares, our shareholders immediately prior to such transaction could own less
than a majority of our issued and outstanding ordinary shares subsequent to such transaction. In addition, other minority shareholders
may subsequently combine their holdings resulting in a single person or group obtaining a larger portion of the company’s shares
than we initially acquired. Accordingly, this may make it more likely that our management will not be able to maintain our control of
the target business.

We
may not have sufficient funds to satisfy indemnification claims of our officers and directors.

We
have agreed to indemnify our officers and directors to the fullest extent permitted by law. However, our officers and directors have
agreed to waive any right, title, interest or claim of any kind in or to any monies in the Trust Account and to not seek recourse against
the Trust Account for any reason whatsoever. Accordingly, any indemnification provided will be able to be satisfied by us only if (i)
we have sufficient funds outside of the Trust Account or (ii) we consummate an initial Business Combination. Our obligation to indemnify
our officers and directors may discourage shareholders from bringing a lawsuit against our officers and directors for breach of their
fiduciary duty. These provisions also may have the effect