Company: MKLY
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109976
Chunk: 40

Company: McKinley Acquisition Corp
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 or to fund a “no-shop” provision (a
provision designed to keep target businesses from “shopping” around for transactions with other companies or investors on
terms more favorable to such target businesses) with respect to a particular proposed business combination, although we do not have any
current intention to do so. If we entered into an agreement where we paid for the right to receive exclusivity from a target business,
the amount that would be used as a down payment or to fund a “no-shop” provision would be determined based on the terms of
the specific business combination and the amount of our available funds at the time. Our forfeiture of such funds (whether as a result
of our breach or otherwise) could result in our not having sufficient funds to continue searching for, or conducting due diligence with
respect to, prospective target businesses.

Moreover, we may need to obtain additional financing
to complete our initial business combination, either because the transaction requires more cash than is available from the proceeds held
in our Trust Account or because we become obligated to redeem a significant number of our public shares upon completion of the business
combination, in which case we may issue additional securities or incur debt in connection with such business combination. In addition,
we intend to target businesses with enterprise values that are greater than we could acquire with the net proceeds of our Initial Public
Offering and the sale of the private placement units, and, as a result, if the cash portion of the purchase price exceeds the amount available
from the Trust Account, net of amounts needed to satisfy any redemptions by public shareholders, we may be required to seek additional
financing to complete such proposed initial business combination. We may also obtain financing prior to the closing of our initial business
combination to fund our working capital needs and transaction costs in connection with our search for and completion of our initial business
combination. There is no limitation on our ability to raise funds through the issuance of equity or equity-linked securities or through
loans, advances or other indebtedness in connection with our initial business combination, including pursuant to forward purchase agreements
or backstop agreements we may enter into following consummation of our Initial Public Offering. Subject to compliance with applicable
securities laws, we would only complete such financing simultaneously with the completion of our initial business combination. If we are
unable to complete our initial business combination because we do not have sufficient funds available to us, we will be forced to liquidate
the Trust Account. In addition, following our initial business combination, if