Company: MKLY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109976
Chunk: 56

Company: McKinley Acquisition Corp
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 56
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 if cash on hand is insufficient, we may need to obtain additional
financing in order to meet our obligations.

24

Related Party Transactions

On April 9, 2025, the sponsor entered into
a certain subscription agreement with the company, paying $25,000, or approximately $0.004 per share, in exchange for the issuance of
6,543,103 founder shares to the sponsor. The sponsor transferred 200,000 founder shares to Clear Street in connection with the closing
of the Initial Public Offering, for the amount of $0.004 per share prior to the consummation of our Initial Public Offering. Clear Street
also has the right to receive up to 229,008 Class B ordinary shares if the Lookback Price is less than $1.25. The “Lookback Price”
is equal to the volume-weighted average price of the Class A Ordinary Shares (or the securities into which such shares have converted)
for a 30-trading day period ending on the Release Date. The “Release Date” is the date that is the later of (i) the date that
all contractual lock-ups on the founder shares have expired, and (ii) the date on which a resale registration statement relating to the
founder shares (or proceeds thereof) has been declared effective by the SEC.

Our sponsor, McKinley Partners LLC, which we
refer to as the “sponsor”, the underwriters, which we refer to as “Clear Street”, and Brookline Capital
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) at the closing of the Initial Public Offering. 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