Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 58

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 58
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must ensure that it is engaged primarily in a business other than investing, reinvesting or trading of securities and that its activities
do not include investing, reinvesting, owning, holding or trading “investment securities” constituting more than 40% of our
assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis.

31

The
SEC recently provided guidance that the determination of whether a SPAC, like us, is an “investment company” under the Investment
Company Act is a facts and circumstances determination requiring individualized analysis and depends on a variety of factors, including
a SPAC’s duration, asset composition, business purpose and activities. When applying these factors to us we do not believe that
our principal activities will subject us to the Investment Company Act. To this end, the Company was formed for the purpose of completing
an initial Business Combination with one or more businesses. Since our inception, our business has been and will continue to be focused
on identifying and completing an initial Business Combination, and thereafter, operating the post-transaction business for the long term.
Further, we do not plan to buy businesses or assets with a view to resale or profit from their resale and we do not plan to buy unrelated
businesses or assets or to be a passive investor. In addition, the proceeds held in the Trust Account were invested in United States
“government securities” within the meaning of Section 2(a)(16) of the Investment Company Act having a maturity of 185 days
or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act which invest
only in direct U.S. government treasury obligations from the consummation of our IPO until March 1, 2024, when, to mitigate the potential
risk that we might be deemed to be an investment company for purposes of the Investment Company Act, the trustee, pursuant to Amendment
No. 1 the IMTA, liquidated such investments and moved the proceeds to an interest-bearing demand deposit account. As a result, the remaining
proceeds from the IPO and sale of Private Placement Warrants are no longer invested in U.S. government securities or money market funds.
Pursuant to the IMTA, the trustee is not permitted to invest in other securities or assets. By restricting the investment of the proceeds
in this manner, and by focusing our directors’ and officers’ time toward, and operating our business for the purpose of,