Company: MLAC
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0001213900-25-025105
Chunk: 154

Company: Mountain Lake Acquisition Corp.
Filing Date: 2025-03-19
Form: 10-K
Item: Item 1
Chunk 154
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 we expect our securities could be quoted on an over-the-counter market. If this were to occur, we could face significant
material adverse consequences, including:

●a
limited availability of market quotations for our securities;

●reduced
liquidity for our securities;

●a
determination that our Class A Ordinary Shares are a “penny stock” which will require brokers trading in our Class A
Ordinary Shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading
market for our securities;

●a
limited amount of news and analyst coverage; and

●a
decreased ability to issue additional securities or obtain additional financing in the future.

47

The
National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating
the sale of certain securities, which are referred to as “covered securities.” Because we expect that our units and eventually
our Class A Ordinary Shares and rights will be listed on Nasdaq, our units, Class A Ordinary Shares and rights will qualify
as covered securities under the statute. Although the states are preempted from regulating the sale of our securities, the federal statute
does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity, then
the states can regulate or bar the sale of covered securities in a particular case. While we are not aware of a state having used these
powers to prohibit or restrict the sale of securities issued by blank check companies, other than the State of Idaho, certain state securities
regulators view blank check companies unfavorably and might use these powers, or threaten to use these powers, to hinder the sale of
securities of blank check companies in their states. Further, if we were no longer listed on Nasdaq, our securities would not qualify
as covered securities under the statute and we would be subject to regulation in each state in which we offer our securities.

The
grant of registration rights to our initial shareholders and holders of our private units may make it more difficult to complete our
initial business combination, and the future exercise of such rights may adversely affect the market price of our Class A Ordinary
Shares.

Pursuant
to a registration rights agreement with our sponsor, at or after the time of our initial business combination, our initial shareholders
and their permitted transferees can demand that we register the resale of their founder shares. In addition