Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 73

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 73
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 changes to laws, regulations or interpretations that
can cause compliance costs or cause disruptions to companies’ productivity as a business. Overall, these firms are exposed to greater
financial risk than other industries and can also be sensitive to policy changes that could potentially affect industry-wide profitability.
These risks are considered systematic as policy changes can impact industry-wide R&D spending or go-to-market strategies as well
as impact cash flow and product sales. For instance, as of the time of our IPO, governmental budgets across developing countries came
under pressure to reduce spending and control healthcare costs, which could both adversely affect regulatory processes and public funding
available for healthcare products, services and facilities. These healthcare reforms may institute regulatory mandates and other measures
designed to constrain medical costs, including coverage and reimbursement for healthcare services, drugs, or devices. Potential regulatory
changes include drug price caps or access and healthcare cost transparency, all of which can potentially become a risk to profitability
for these companies. The ultimate effects of healthcare reform or any future legislation, regulation, or healthcare initiatives, if any,
on the healthcare sector, whether implemented at the federal or state level or internationally, cannot be predicted with certainty and
such reform, legislation, regulation, or initiatives may adversely affect the performance of a potential Business Combination.

Technical
expertise is also crucial in the life science industry as the products produced in these sectors are complex - it would take the average
investor significant time to understand the factors that affect the product’s chances of success. Even large, well-established
financial institutions typically have a poor track record when it comes to forecasting the performance of companies in the biopharmaceuticals
or healthcare space. Therefore, technical expertise is crucial in these industries, especially at the management level of companies.
There is risk with certain companies in this sector that may not have the right level of technical expertise at the management level
or management is valuation-driven with stronger focus on profitability than having the technical expertise of understanding how research
findings (e.g., regarding side effects or comparative benefits of one or more particular treatments, services or products) and technological
innovation (together with patent expirations) may make any particular treatment, service or product less attractive if previously unknown
or underappreciated risks are revealed, or if a more effective, less costly or less risky solution is or becomes available. Any such
development could have an adverse effect on the companies that are target businesses for investment.

Finally,
certain healthcare related companies depend on the exclusive rights or patents for the