Company: MKLY
Filing Date: 2025-07-25
Form Type: S-1/A
Source: 0001213900-25-067524
Chunk: 125

Company: McKinley Acquisition Corp
Filing Date: 2025-07-25
Form: S-1/A
Chunk 125
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 Class A ordinary shares even if the trading price of our Class A ordinary shares declines after we complete our initial business combination. Our sponsor may therefore be economically incentivized to complete an initial business combination with a riskier, weaker -performingor less -establishedtarget business than would be the case if our sponsor had paid the same per share price for the founder shares as our public shareholders paid for their public shares. The non -managingsponsor investors will share in any appreciation of the founder shares through their membership interests in the sponsor if we successfully complete a business combination. Accordingly, non -managingsponsor investors’ interests in the founder shares owned by them indirectly through their membership interests in the sponsor may provide them with an incentive to vote any public shares they own in favor of a business combination, and make a substantial profit on such interests, even if the business combination is with a target that ultimately declines in value and is not profitable for other public shareholders. This dilution would increase to the extent that the anti -dilutionprovisions of the founder shares result in the issuance of Class A ordinary shares on a greater than one -to-onebasis upon conversion of the founder shares at the time of our initial business combination and would become exacerbated to the extent that public shareholders seek redemptions from the trust for their public shares. In addition, because of the anti -dilutionprotection in the founder shares, any equity or equity -linkedsecurities issued in connection with our initial business combination would be disproportionately dilutive to our Class A ordinary shares. The value of the founder shares following completion of our initial business combination is likely to be substantially higher than the nominal price paid for them, even if the trading price of our ordinary shares at such time is substantially less than $10.00 per public share. Upon the closing of this offering and assuming no exercise of the over -allotmentoption, our sponsor, and the non -managingsponsor investors (if any), will have invested in us an aggregate of $4,200,000, comprised of the $25,000 purchase price for the founder shares and the $4,200,000 purchase price for the private placement units (which includes $4,150,000 in cash and the Private Placement Units Note). Assuming a trading price of $10.00 per public share upon consummation of our initial business combination, the 5,689,655 founder shares would have an aggregate implied value of $56,896,550. Even if the trading price of