Company: MLAC
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0001213900-25-025105
Chunk: 303

Company: Mountain Lake Acquisition Corp.
Filing Date: 2025-03-19
Form: 10-K
Item: Item 1A
Chunk 303
---
 any
stock repurchased by the corporation during a taxable year, net of the aggregate fair market value of certain new stock issuances by
the repurchasing corporation during the same taxable year. The Biden administration has proposed increasing the Excise Tax rate from
1% to 4%; however, it is unclear whether such a change will be enacted and, if enacted, how soon it could take effect.

As
a Cayman Islands exempted company, the Excise Tax is currently not expected to apply to redemptions of our ordinary shares (absent any
regulations or other additional guidance that may be issued in the future).

However,
in connection with an initial business combination involving a company organized under the laws of a state of the United States,
it is possible that we domesticate and continue as a corporation organized under the laws of a state of the United States prior
to certain redemptions. Because we expect that, following such a domestication, our securities would continue to trade on a national
securities exchange, in such a case, we could be subject to the Excise Tax with respect to any subsequent redemptions (including redemptions
in connection with an extension vote or the initial business combination). Whether and to what extent we would be subject to the Excise
Tax in connection with a business combination, extension vote or otherwise would depend on a number of factors, including (i) the
fair market value of the redemptions and repurchases in connection with the business combination, extension vote or otherwise, (ii) the
structure of a business combination, (iii) the nature and amount of any “PIPE” or other equity issuances in connection
with a business combination (or otherwise issued not in connection with a business combination but issued within the same taxable year
of a business combination) and (iv) the content of final regulations and other guidance from the Treasury.

Any
Excise Tax that becomes payable as a result of any redemptions of our ordinary shares (or other shares into which such ordinary shares
may be converted) would be payable by us and not by the redeeming holder. To the extent such taxes are applicable, the amount of cash
available to pay redemptions or to transfer to the target business in connection with our initial business combination may be reduced,
which could result in our inability to meet conditions in the agreement relating to our initial business combination related to a minimum
cash requirement, if any, or otherwise result in the shareholders