Company: MLAC
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0001213900-25-025105
Chunk: 275

Company: Mountain Lake Acquisition Corp.
Filing Date: 2025-03-19
Form: 10-K
Item: Item 1A
Chunk 275
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 initial business combination is likely to be substantially higher than the nominal
price paid for them, even if the trading price of our ordinary at such time is substantially less than $10.00 per share.

Our
sponsor has invested in us an aggregate of $5,225,000, comprised of the $25,000 purchase price for the founder shares and the $5,200,000
purchase price for the private units. Assuming a trading price of $10.00 per share upon consummation of our initial business combination,
the 7,187,500 founder shares would have an aggregate implied value of $71,875,000. Even if the trading price of our ordinary shares significantly
declines, the value of the founder shares held by our sponsor will be significantly greater than the amount our sponsor paid to purchase
such shares. As a result, our sponsor is likely to be able to make a substantial profit on its investment in us at a time when our public
shares have lost significant value. Accordingly, our management team, which owns interests in our sponsor, may be more willing to pursue
a business combination with a riskier or less-established target 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.

38

Resources
could be wasted in researching business combinations that are not completed, which could materially adversely affect subsequent attempts
to locate and acquire or merge with another business. If we are unable to complete our initial business combination, our public shareholders
may only receive their pro rata portion of the funds in the trust account that are available for distribution to public shareholders,
and our rights will expire worthless.

We
anticipate that the investigation of each specific target business and the negotiation, drafting and execution of relevant agreements,
disclosure documents and other instruments will require substantial management time and attention and substantial costs for accountants,
attorneys and others. If we decide not to complete a specific initial business combination, the costs incurred up to that point for the
proposed transaction likely would not be recoverable. Furthermore, if we reach an agreement relating to a specific target business, we
may fail to complete our initial business combination for any number of reasons including those beyond our control. Any such event will
result in a loss to us of the related costs incurred which could materially adversely affect subsequent attempts to locate and acquire
or merge with another business. If we are unable to complete our initial business combination, our public shareholders