Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 259

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 259
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 companies;
update and expand guidance regarding the general use of projections in SEC filings, as well as when projections are disclosed in connection
with proposed business combination transactions; increase the potential liability of certain participants in proposed business combination
transactions; and could impact the extent to which SPACs could become subject to regulation under the Investment Company Act. The 2024
SPAC Rules may materially adversely affect our business, including our ability to negotiate and complete, and the costs associated with,
our initial Business Combination, and results of operations.

There
may be tax consequences to our Business Combination that may adversely affect us.

While
we expect to undertake any Business Combination transaction so as to minimize taxes to us, the target, the acquired business and/or assets,
and the respective shareholders of our Company and target, such Business Combination might not meet the applicable statutory requirements
of a tax-free reorganization in all applicable jurisdictions, or the parties might not obtain the intended tax-free treatment upon a
transfer of shares or assets or other Business Combination transaction. A non-qualifying reorganization could result in the imposition
of substantial taxes on us, the target, the acquired business and/or assets, and the respective shareholders of our Company and target.

The
new 1% U.S. federal excise tax on stock buybacks could be imposed on redemptions of our stock if we were to become a “covered corporation”
in the future.

On
August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (the “IR Act”), which, among other things,
generally imposes a 1% U.S. federal excise tax (the “Excise Tax”) on certain repurchases of stock by “covered corporations”
(which include publicly traded domestic (i.e., U.S.) corporations and certain domestic subsidiaries of publicly traded foreign (i.e.,
non-U.S.) corporations) occurring on or after January 1, 2023. The Excise Tax is imposed on the repurchasing corporation itself, not
its stockholders from which the stock is repurchased. The amount of the Excise Tax is generally 1% of the fair market value of the shares
repurchased at the time of the repurchase. However, for purposes of calculating the Excise Tax, repurchasing corporations are permitted
to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable
year. In addition, certain exceptions apply to the Excise