Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 260

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 260
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 Tax. The U.S. Department of the Treasury (the “Treasury”) has authority
to provide regulations and other guidance to carry out, and prevent the abuse or avoidance of the Excise Tax. On December 27, 2022, the
Treasury issued a notice that provides interim operating rules for the Excise Tax, including rules governing the calculation and reporting
of the Excise Tax, on which taxpayers may rely until the forthcoming proposed Treasury regulations addressing the Excise Tax are published.
Although such notice clarifies certain aspects of the Excise Tax, the interpretation and operation of other aspects of the Excise Tax
remain unclear, and such interim operating rules are subject to change.

55

We
are currently not a covered corporation for purposes of the Excise Tax. If we were to become a covered corporation in the future, whether
in connection with the consummation of our Business Combination with a U.S. company (including if we were to redomicile as a U.S. corporation
in connection therewith) or otherwise, whether and to what extent we would be subject to the Excise Tax on a redemption of our stock
would depend on a number of factors, including (i) whether the redemption is treated as a repurchase of stock for purposes of the Excise
Tax, (ii) the fair market value of the redemption treated as a repurchase of stock, (iii) the structure of our Business Combination,
(iv) the nature and amount of any “PIPE” or other equity issuances (whether in connection with our Business Combination or
otherwise) issued within the same taxable year of a redemption treated as a repurchase of stock and (v) the content of forthcoming regulations
and other guidance from the Treasury. As noted above, the Excise Tax would be payable by the repurchasing corporation, and not by the
redeeming holder, and only limited guidance on the mechanics of any required reporting and payment of the Excise Tax on which taxpayers
may rely have been issued to date. If we were to become a covered corporation in the future, the per-share redemption amount payable
from the Trust Account (including any interest earned on the funds held in the Trust Account) to our public stockholders in connection
with a redemption of our stock is not expected to be reduced by any Excise Tax imposed on us. The imposition of the Excise Tax on us
could, however, cause a reduction in the cash available on hand to complete our Business Combination and may affect our ability to