Company: MKLY
Filing Date: 2025-05-09
Form Type: DRS
Source: 0001213900-25-041164
Chunk: 139

Company: McKinley Acquisition Corp
Filing Date: 2025-05-09
Form: DRS
Chunk 139
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ment option is exercised in full) will be $152,400,000 (or $174,900,000 if the underwriter’s over -allotmentoption is exercised in full). A total of $150,000,000 (or $174,900,000 if the over -allotmentoption is exercised in full) will be held in trust and includes the $4,500,000 (or $5,175,000 if the over -allotmentoption is exercised in full) of contingent, deferred underwriting commissions that may be due to the underwriter upon the closing of an initial business combination). A total of $2,400,000 will be held by us outside of the trust account to fund our working capital requirements. Upon the completion of an initial business combination, three percent (3.0%) of amounts remaining in the trust account, after redemption payments and other permitted withdrawals, and excluding amounts related to any non -redemptionagreements, forward purchase agreements or similar agreements, shall be paid to the underwriters as contingent, deferred underwriting commissions. The proceeds held in the trust account will initially be invested only in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a -7under the Investment Company Act which invest only in direct U.S. government treasury obligations; the holding of these assets in this form is intended to be temporary and for the sole purpose of facilitating the intended business combination. To mitigate the risk that we might be deemed to be an investment company for purposes of the Investment Company Act, which risk increases the longer that we hold investments in the trust account, we may, at any time (based on our management team’s ongoing assessment of all factors related to our potential status under the Investment Company Act), instruct the trustee to liquidate the investments held in the trust account and instead to hold the funds in the trust account in cash or in an interest bearing demand deposit account at a bank. In the event that the offering expenses are less than our estimate of $750,000, the amount of funds available outside the trust account would increase by a corresponding amount. We intend to use substantially all of the funds held in the trust account, including any amounts representing interest earned on the trust account (excluding deferred underwriting commissions). We may withdraw interest for permitted withdrawals, including the payment of income or franchise (but not excise) taxes. Our annual income tax obligations will depend on the amount of interest and other income