Company: VMCWF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010983
Chunk: 12

Company: Valuence Merger Corp. I
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 the option of the payees, which shall have terms identical to the Private Placement Warrants
(the “Conversion Warrants”). If the Company does not consummate a Business Combination by the end of the Combination Period,
the outstanding principal amount of the Contribution Notes will be repaid only from funds held outside of the Trust Account or will be
forfeited, eliminated or otherwise forgiven. The Contribution Notes were accounted for using the bifurcation method and it was determined
that the conversion feature had no value and the Contribution Notes were recorded at par value. As of each of March 31, 2025 and December
31, 2024, $613,207 was outstanding under the Sponsor Convertible Promissory Note and $1,650,941 has been borrowed against VP Convertible
Promissory Note.

On
June 14, 2023, the Listing Qualifications Department of the Nasdaq Stock Market, LLC (“Nasdaq”) notified the Company that
the Company was not in compliance with Nasdaq’s minimum $1,000,000 aggregate market value of warrants requirement set forth in
Listing Rule 5452(b)(C).

On
March 1, 2024, the Company entered into Amendment No. 1 (the “IMTA Amendment”) to the Investment Management Trust Agreement
(the “IMTA”) with Continental Stock Transfer & Trust Company, as trustee. Pursuant to the IMTA Amendment, Section 1(c)
of the IMTA was amended to provide that the trustee may, at the direction of the Company (i) hold funds uninvested, (ii) hold funds in
an interest-bearing or non-interest bearing bank demand deposit account at a U.S. chartered commercial bank with consolidated assets
of $100 billion or more selected by the trustee that is reasonably satisfactory to the Company, or (iii) invest and reinvest the Property
(as defined in the IMTA) in solely 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 the conditions of paragraphs (d)(1), (d)(2), (d)(3) and
(d)(4) of Rule 2a-7 promulgated under the Investment Company Act (or any successor rule), which invest only in direct U.S. government
treasury obligations, as determined by the Company. Pursuant to the IMTA Amendment, on March 1,