Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 102

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 102
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 investors may not be able to enforce federal securities laws or
their other legal rights.

It
is possible that after our initial Business Combination, a majority of our directors and officers will reside outside of the United States
and all of our assets will be located outside of the United States. As a result, it may be difficult, or in some cases not possible,
for investors in the United States to enforce their legal rights, to effect service of process upon all of our directors or officers
or to enforce judgments of United States courts predicated upon civil liabilities and criminal penalties on our directors and officers
under United States laws.

Corporate
governance standards in non-US countries may not be as strict or developed as in the United States and such weakness may hide issues
and operational practices that are detrimental to a target business.

General
corporate governance standards in non-US countries are weaker than those in the United States. This could result in unfavorable related
party transactions, over-leveraging, improper accounting, family company interconnectivity and poor management. Local laws often do not
go far enough to prevent improper business practices. Therefore, shareholders may not be treated impartially and equally as a result
of poor management practices, asset shifting, conglomerate structures that result in preferential treatment to some parts of the overall
company, and cronyism. The lack of transparency and ambiguity in the regulatory process also may result in inadequate credit evaluation
and weakness that may precipitate or encourage financial crisis. In our evaluation of a Business Combination we will have to evaluate
the corporate governance of a target and the business environment, and in accordance with United States laws for reporting companies
take steps to implement practices that will cause compliance with all applicable rules and accounting practices. Notwithstanding these
intended efforts, there may be endemic practices and local laws that could add risk to an investment we ultimately make and that result
in an adverse effect on our operations and financial results.

53

If
the government of the country in which we effect our initial Business Combination finds that the agreements we entered into to acquire
control of a target business through contractual arrangements with one or more operating businesses do not comply with local governmental
restrictions on foreign investment, or if these regulations or the interpretation of existing regulations change in the future, we could
be subject to significant penalties or be forced to relinquish our interests in those operations.

Some
countries in Asia currently prohibit and/or restrict foreign ownership in certain “important industries,” including technology,
entertainment and others. There are uncertainties