Company: MKLY
Filing Date: 2025-09-23
Form Type: 10-Q
Source: 0001213900-25-090712
Chunk: 33

Company: McKinley Acquisition Corp
Filing Date: 2025-09-23
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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17

Related Party Transactions

On April 9, 2025, the sponsor entered into
a certain subscription agreement with the company, paying $25,000, or approximately $0.004 per share, in exchange for the issuance of
6,543,103 founder shares to the sponsor. The sponsor transferred 200,000 founder shares to Clear Street in connection with the closing
of the Initial Public Offering, for the amount of $0.004 per share prior to the consummation of our Initial Public Offering. Clear Street
also has the right to receive up to 229,008 Class B ordinary shares if the Lookback Price is less than $1.25. The “Lookback Price”
is equal to the volume-weighted average price of the Class A Ordinary Shares (or the securities into which such shares have converted)
for a 30-trading day period ending on the Release Date. The “Release Date” is the date that is the later of (i) the date that
all contractual lock-ups on the founder shares have expired, and (ii) the date on which a resale registration statement relating to the
founder shares (or proceeds thereof) has been declared effective by the SEC.

These ordinary shares will be deemed compensation
by FINRA and are therefore subject to a lock-up for a period of 180 days from the date of the commencement of sales in our Initial Public
Offering pursuant to FINRA Rule 5110(e)(1). Pursuant to FINRA Rule 5110(e)(1), these securities will not be sold, transferred, assigned,
pledged or hypothecated or the subject of any hedging, short sale, derivative, put or call transaction that would result in the economic
disposition of the securities by any person for a period of 180 days from the commencement of sales of our Initial Public Offering except
to any underwriter and selected dealer participating in the offering and their officers, partners, registered persons or affiliates.

The number of founder shares outstanding was determined
based on the expectation that the total size of our Initial Public Offering would be a maximum of 17,250,000 units if the underwriters’
over-allotment option is exercised in full, and therefore that such founder shares would represent 20% of the outstanding shares after
the Initial Public Offering.

Our sponsor, McKinley Partners LLC, which we refer
to as the “sponsor”, Clear Street, which we refer to as “Clear Street”, and Brookline Capital