Company: VMCWF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001827
Chunk: 103

Company: Valuence Merger Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 103
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 under certain regulations whether obtaining a majority interest through contractual
arrangements will comply with regulations prohibiting or restricting foreign ownership in certain industries. In addition, there can
be restrictions on the foreign ownership of businesses that are determined from time to time to be in “important industries”
that may affect the national economic security or those having “famous brand names” or “well-established brand names.”

If
we or any of our potential future target businesses are found to be in violation of any existing or future local laws or regulations
(for example, if we are deemed to be holding equity interests in certain of our affiliated entities in which direct foreign ownership
is prohibited), the relevant regulatory authorities might have the discretion to:

    ●
    revoke
    the business and operating licenses of the potential future target business;

    ●
    confiscate
    relevant income and impose fines and other penalties;

    ●
    discontinue
    or restrict the operations of the potential future target business;

    ●
    require
    us or the potential future target business to restructure the relevant ownership structure or operations;

    ●
    restrict
    or prohibit our use of the proceeds of the IPO to finance our businesses and operations in the relevant jurisdiction; or

    ●
    impose
    conditions or requirements with which we or the potential future target business may not be able to comply.

If
our management following our initial Business Combination is unfamiliar with United States securities laws, they may have to expend time
and resources becoming familiar with such laws, which could lead to various regulatory issues.

Following
our initial Business Combination, any or all of our management team could resign from their positions as officers of our Company, and
the management of the target business at the time of the Business Combination will remain in place. Management of the target business
may not be familiar with United States securities laws. If new management is unfamiliar with United States securities laws, they may
have to expend time and resources becoming familiar with such laws. This could be expensive and time-consuming and could lead to various
regulatory issues which may adversely affect our operations.

After
our initial Business Combination, substantially all of our assets may be located in a foreign country and substantially all of our revenue
will be derived from our operations in such country. Accordingly, our results of operations and prospects will be subject, to a significant
extent, to the economic, political and legal policies, developments and conditions in the country in which we operate.

The
economic, political and social conditions, as well