Company: VMCWF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023470
Chunk: 32

Company: Valuence Merger Corp. I
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 Note to the Sponsor, in the principal amount of $300,000. The June 2024 Note bears no
interest and is repayable in full upon the earlier of (a) the date of the consummation of the Company’s initial Business Combination
or (b) the date of the Company’s liquidation. If the Company does not consummate an initial Business Combination by the Maturity
Date, the June 2024 Note will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise
forgiven. Upon maturity, the outstanding principal balance of the June 2024 Note may be converted into warrants, at a price of $1.50
per warrant, at the option of the Sponsor, provided that the maximum aggregate conversion of all convertible notes issued to the Sponsor,
or its affiliates may not exceed $1.5 million. Such warrants will have terms identical to the Private Placement Warrants. The June 2024
Note was accounted for using the bifurcation method and it was determined that the conversion feature had no value, and the June 2024
Note was recorded at par value. On June 4, 2024, the Company borrowed $300,000 under the June 2024 Note, which was outstanding as of
June 30, 2025.

    13

VALUENCE
MERGER CORP. I

NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE
30, 2025

On
June 5, 2023, the Company issued an unsecured convertible promissory note to Valuence Partners LP, an affiliate of the Sponsor (the “VP
Convertible Promissory Note”), pursuant to which the Company may borrow up to an aggregate maximum amount of $1,650,941. The VP
Convertible Promissory Note is non-interest bearing and payable on the earlier of (i) the date of the Business Combination or (ii) the
winding up of the Company. At any time prior to payment in full of the principal balance of the VP Convertible Promissory Note, Valuence
Partners LP may elect to convert all or any portion of the unpaid principal balance into that number of warrants, each exercisable for
one Class A Share of the Company, equal to (x) the portion of the principal amount of the VP Convertible Promissory Note being converted,
divided by (y) $