Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 204

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 204
---
 of the Private Placement Warrants are intended to be used to complete an initial Business Combination
with a target business that has not been identified, we may be deemed to be a “blank check” company under the United States
securities laws. However we are exempt from rules promulgated by the SEC to protect investors in blank check companies, such as Rule
419.

Accordingly,
investors will not be afforded the benefits or protections of those rules. Among other things, this means we have a longer period of
time to complete our initial Business Combination than do companies subject to Rule 419. Moreover, if the IPO were subject to Rule 419,
that rule would prohibit the release of any interest earned on funds held in the Trust Account to us unless and until the funds in the
Trust Account were released to us in connection with our completion of an initial Business Combination.

If
the net proceeds of the IPO and the sale of Private Placement Warrants not being held in the Trust Account are insufficient to allow
us to operate for at least the Combination Period, we may be unable to complete our initial Business Combination.

As
of December 31, 2024, $61,037 was available to us outside the Trust Account to fund our working capital requirements. While we believe
that such funds, together with funds available from loans from our Sponsor, its affiliates, or our management team, will be sufficient
to allow us to operate for at least the duration of the Combination Period, we cannot assure you that our estimate is accurate and our
Sponsor, its affiliates or our management team are under no obligation to loan or advance funds to us. The funds available to us outside
of the Trust Account may not be sufficient to allow us to operate for at least the Combination Period, assuming that our initial Business
Combination is not completed during that time. We expect to incur significant costs in pursuit of our acquisition plans. Management’s
plans to address this need for capital through the IPO and potential loans from certain of our affiliates are discussed in the section
of this Annual Report titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
However, our affiliates are not obligated to make loans to us in the future, and we may not be able to raise additional financing from
unaffiliated parties necessary to fund our expenses. Any such event in the future may negatively impact the analysis regarding our ability
to continue as a going concern at such time. See “-We have no operating history and are subject to a mandatory