Company: MLAC
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0001213900-25-025105
Chunk: 273

Company: Mountain Lake Acquisition Corp.
Filing Date: 2025-03-19
Form: 10-K
Item: Item 1A
Chunk 273
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, unexpected
risks may arise and previously known risks may materialize in a manner not consistent with our preliminary risk analysis. Even though
these charges may be non-cash items and not have an immediate impact on our liquidity, the fact that we report charges of this nature
could contribute to negative market perceptions about us or our securities. In addition, charges of this nature may cause us to violate
net worth or other covenants to which we may be subject as a result of assuming pre-existing debt held by a target business or by
virtue of our obtaining debt financing to partially finance the initial business combination or thereafter. Accordingly, any shareholders
who choose to remain shareholders following the business combination could suffer a reduction in the value of our securities. Such shareholders
are unlikely to have a remedy for such reduction in value unless they are able to successfully claim that the reduction was due to the
breach by our officers or directors of a duty of care or other fiduciary duty owed to them, or if they are able to successfully bring
a private claim under securities laws that the proxy materials or tender offer documents, as applicable, relating to the business combination
contained an actionable material misstatement or material omission.

37

The
nominal purchase price paid by our sponsor for the founder shares may result in significant dilution to the implied value of your public
shares upon the consummation of our initial business combination.

We offered our units at an offering price of $10.00 per unit and
the amount in our trust account is $10.05 per public share, implying an initial value of $10.05 per public share. However, prior to the
initial public offering, our sponsor paid a nominal aggregate purchase price of $25,000 for the founder shares, or approximately $0.003
per share. As a result, the value of your public shares may be significantly diluted upon the consummation of our initial business combination,
when the founder shares are converted into public shares. For example, the following table shows the dilutive effect of the founder shares
on the implied value of the public shares upon the consummation of our initial business combination assuming that our equity value at
that time is $223,100,000 (following payment of $8,050,000 of deferred underwriting commissions), which is the amount we would have for
our initial business combination in the trust account, no interest is earned on the funds held in the trust account, and no public shares