Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 210

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 210
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30

Our
shareholders may be held liable for claims by third parties against us to the extent of distributions received by them upon redemption
of their shares.

If
we are forced to enter into an insolvent liquidation, any distributions received by shareholders could be viewed as an unlawful payment
if it was proved that immediately following the date on which the distribution was made, we were unable to pay our debts as they fall
due in the ordinary course of business. As a result, a liquidator could seek to recover some or all amounts received by our shareholders.
Furthermore, our directors may be viewed as having breached their fiduciary duties to us or our creditors and/or may have acted in bad
faith, and thereby exposing themselves and our Company to claims, by paying Public Shareholders from the Trust Account prior to addressing
the claims of creditors. We cannot assure you that claims will not be brought against us for these reasons. We and our directors and
officers who knowingly and willfully authorized or permitted any distribution to be paid out of our share premium account while we were
unable to pay our debts as they fall due in the ordinary course of business would be guilty of an offence and may be liable to a fine
of up to $18,292 and to imprisonment for five years in the Cayman Islands.

We
may not hold an annual general meeting until after the consummation of our initial Business Combination. Our Public Shareholders will
not have the right to appoint directors prior to the consummation of our initial Business Combination.

There is no requirement under the Companies Act for us to
hold annual or extraordinary general meetings in order to appoint directors. Until we hold an annual general meeting, Public Shareholders
may not be afforded the opportunity to discuss Company affairs with management. Currently, our Initial Shareholders own approximately
75% of our issued and outstanding ordinary shares. In addition, prior to our initial Business Combination, only holders of our Founder
Shares, all of which are held by our Initial Shareholders, will have the right to vote on the appointment of our directors. Our Initial
Shareholders have agreed that, subject to applicable law, neither of our Initial Shareholders will vote their Founder Shares to change
the size of our Board of Directors or, without the others’ consent, with respect to appointment of directors. As holders of our
Class A ordinary shares, our Public Shareholders will not have the right to vote on the appointment of directors prior to consummation
of our initial Business Combination. These