Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 1387

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 11
Chunk 1387
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 principal
amount of $613,207 and to Valuence Partners LP in the aggregate principal amount of $1,650,941. The Contribution Notes will be repayable
by the Company upon the earlier of (i) consummation of a Business Combination and (ii) the date of the liquidation of the Company. Such
loans may be converted into warrants of the post-Business Combination entity at the option of the payees, which shall have terms identical
to the Private Placement Warrants. If the Company does not consummate Such loans may be converted into warrants of the post-Business
Combination entity at the option of the payees, which shall have terms identical to the Private Placement Warrants. If the Company does
not consummate a Business Combination by the end of the Combination Period, the outstanding principal amount of the Contribution Notes
will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven. The Contribution
Notes were accounted for using the bifurcation method and it was determined that the conversion feature had no value and the Contribution
Notes were recorded at par value. As of December 31, 2024, $613,207 is outstanding under the Sponsor Convertible Promissory Note and
$1,650,941 has been borrowed against the VP 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. On June 4,
2024, the Company borrowed $300,000 under the June