Company: MLAC
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001213900-25-108244
Chunk: 77

Company: Mountain Lake Acquisition Corp.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 77
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Business Combination Agreement with Avalanche
Treasury Co.

On October 1, 2025, we entered into a Business
Combination Agreement (the “Business Combination Agreement”) with Avalanche Treasury Corporation, a Delaware corporation
(“Pubco”), Avalanche SPAC Merger Sub LLC, a Delaware limited liability company, Avalanche Company Merger Sub LLC, a Delaware
limited liability company, Avalanche Treasury Company LLC, a Delaware limited liability company (the “AT Company”), and Dragonfly
Digital Management, LLC, a Delaware limited liability company (the “Seller”). The transactions contemplated by the Business
Combination Agreement are referred to as the “Proposed Business Combination.”

For further details on the Proposed Business
Combination, refer to our Current Report on Form 8-K filed with the SEC on October 7, 2025.

Sponsor Support Agreement

Concurrently with the execution of the Business
Combination Agreement, we entered into a Sponsor Support Agreement with our Sponsor and Pubco (the “Sponsor Support Agreement”).
In addition, our Sponsor agreed pursuant to the Sponsor Support Agreement to effect certain security cancellations and to deposit certain
Pubco Class A Stock issued to it at the closing of the Proposed Business Combination (the “Closing”) into escrow in connection
with the Closing. 

Company Unit Subscription Agreements

Concurrently with the execution of the Business Combination Agreement,
we, Pubco and the AT Company entered into subscription agreements (collectively, the “Company Unit Subscription Agreements”)
with certain investors (the “Company Unit Investors”), pursuant to which the Company Unit Investors agreed to purchase, payable
in cash or USD Coin (“USDC”), unlocked AVAX or locked AVAX, and the AT Company agreed to issue and sell, approximately $274
million worth of Company Class A units (the “Subscribed Units”) at a price of $10.00 per Subscribed Unit, in a private placement
(the “Company Unit Subscription”), upon the terms and subject to the conditions set forth therein. At the Closing, each Subscribed
Unit held by Company Unit Investors will be converted automatically into one share of Pubco Class A Stock. Pursuant to the Company Unit
Subscription Agreement, Pubco agreed to use commercially reasonable efforts to cause Pubco Class A Stock into which the Subscribed Units
will be converted upon Closing to be registered with the SEC.

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Token Sale Agreement

Concurrently with the execution of the Business
Combination Agreement and the TSA (as defined below), the Seller,