Valuence Merger Corp. I has reported its financial results for the first quarter of 2025, revealing a net income of $24,976, a significant decrease from the $588,681 reported in the same period of 2024. The decline in profitability is attributed to a drop in interest income from investments held in the Trust Account, which fell to $181,347 from $846,150 year-over-year. General and administrative expenses increased to $277,371 from $257,469, contributing to the overall loss from operations of $156,371, compared to a loss of $257,469 in the prior year.
As of March 31, 2025, Valuence Merger Corp. I reported total assets of $22.5 million, a slight increase from $22.3 million at the end of 2024. The company’s cash position improved to $69,188 from $61,037, while cash held in the Trust Account rose to $22.4 million from $22.2 million. However, the company continues to face a working capital deficit of $4.4 million, raising concerns about its liquidity and ability to meet operational needs without additional financing.
In terms of strategic developments, the company has not yet completed any business combinations since its inception. Valuence Merger Corp. I is actively seeking a target company for a merger, focusing on businesses in Asia (excluding China, Hong Kong, and Macau) that are involved in breakthrough technology in life sciences or sustainable technology. The company has extended its Combination Period multiple times, with the latest extension allowing until March 3, 2026, to complete a business combination, contingent upon additional deposits into the Trust Account.
Operationally, the company has seen a reduction in the number of Class A ordinary shares subject to possible redemption, which decreased to 1,867,402 shares as of March 31, 2025, down from 6,210,718 shares at the end of 2024. This reduction follows significant redemptions by shareholders in previous months, which have impacted the available funds in the Trust Account. The company’s management has expressed concerns regarding its ability to continue as a going concern, emphasizing the need for successful completion of a business combination to avoid mandatory liquidation.
Looking ahead, Valuence Merger Corp. I remains focused on identifying and pursuing potential business combination targets. The company is utilizing available funds, including those from working capital loans, to cover operational expenses and facilitate the search for suitable acquisition opportunities. However, the uncertainty surrounding the completion of a business combination and the ongoing liquidity challenges present significant risks to the company's future operations.