Company: MKLY
Filing Date: 2025-09-23
Form Type: 10-Q
Source: 0001213900-25-090712
Chunk: 34

Company: McKinley Acquisition Corp
Filing Date: 2025-09-23
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 Markets, a division
of Arcadia Securities, LLC, which we refer to as “Brookline”, committed to purchase an aggregate of 465,000 units, in a private
placement at $10.00 per unit for a total purchase price of $4,650,000 (which includes $4,150,000 in cash and the Private Placement Units
Note). Of those 465,000 Private Placement Units, our sponsor has agreed to purchase 420,000 Private Placement Units, Clear Street agreed
to purchase 25,000 Private Placement Units, and Brookline agreed to purchase 20,000 Private Placement Units. The Private Placement Units
are identical to the units sold in the Initial Public Offering, subject to certain limited exceptions as described below. Of the 420,000
Private Placement Units to be purchased by the sponsor, a total of 50,000 of those units were purchased by a non-interest bearing, unsecured
promissory note that issued to the sponsor simultaneously with the closing of the Initial Public Offering in the principal amount of $500,000
(the “Private Placement Units Note”), which we may draw down at any time and from time to time in our sole discretion. At
the closing of our initial business combination, we will cancel the number of Private Placement Units proportional to the amount not drawn
under the Private Placement Units Note and the Private Placement Units Note will be canceled.

The Private Placement Units purchased by Clear
Street and Brookline will be deemed compensation by FINRA and are therefore subject to a lock-up for a period of 180 days from the date
of the commencement of sales in the Initial Public Offering pursuant to FINRA Rule 5110(e)(1). Pursuant to FINRA Rule 5110(e)(1), these
securities will not be sold, transferred, assigned, pledged or hypothecated or be the subject of any hedging, short sale, derivative,
put or call transaction that would result in the economic disposition of the securities by any person for a period of 180 days from the
commencement of sales of the Initial Public Offering except to any underwriter and selected dealer participating in the offering and their
officers, partners, registered persons or affiliates.

The Private Placement Units are identical to the
units sold in the Initial Public Offering except that, so long as they are held by our sponsor, Clear Street, Brookline, or their permitted
transferees, the Private Placement Units (i) may not (including the