Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 1624

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 15
Chunk 1624
---
 being converted, divided by (y) $1.50, rounded
up to the nearest whole number of warrants. The Sponsor Convertible Promissory Note was accounted for using the bifurcation method and
was determined that the conversion feature had no value and was recorded at par value. As of December 31, 2024, $613,207 is outstanding
under the Sponsor Convertible Promissory Note.

On June 4, 2024, the Company issued the June 2024
Note to the Sponsor, in the principal amount of $300,000. The June 2024 Note bears no interest and is repayable in full upon the earlier
of (a) the date of the consummation of the Company’s initial Business Combination or (b) the date of the Company’s liquidation.
If the Company does not consummate an initial Business Combination by the Maturity Date, the June 2024 Note will be repaid only from funds
held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven. Upon maturity, the outstanding principal balance
of the June 2024 Note may be converted into warrants, at a price of $1.50 per warrant, at the option of the Sponsor, provided that the
maximum aggregate conversion of all convertible notes issued to the Sponsor, or its affiliates may not exceed $1.5 million. Such warrants
will have terms identical to the Private Placement Warrants. The June 2024 Note was accounted for using the bifurcation method and it
was determined that the conversion feature had no value, and the June 2024 Note was recorded at par value. On June 4, 2024, the Company
borrowed $300,000 under the June 2024 Note, which was outstanding as of December 31, 2024.

On June 5, 2023, the Company issued an unsecured convertible promissory note to Valuence Partners LP, an affiliate of the Sponsor (the
“VP Convertible Promissory Note”), pursuant to which the Company may borrow up to an aggregate maximum amount of $1,650,941.
The VP Convertible Promissory Note is non-interest bearing and payable on the earlier of (i) the date of the Business Combination or
(ii) the winding up of the Company. At any time prior to payment in full of the principal balance of the VP Convertible Promissory Note,
Valuence Partners LP may elect to convert