Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 181

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 181
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interest, or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into warrants of the
post-Business Combination entity at a price of $1.50 per warrant. The warrants would be identical to the Private Placement Warrants.

On
June 5, 2023, the Company issued a promissory note (the “Sponsor Convertible Promissory Note”) in the principal amount of
up to $613,207 to the Sponsor for working capital requirements and payment of certain expenses in connection the Company’s Business
Combination. The Sponsor 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 Sponsor Convertible
Promissory Note, the Sponsor may elect to convert all or any portion of the unpaid principal balance into the Conversion Warrants, equal
to (x) the portion of the principal amount of the Sponsor Convertible Promissory Note 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