Mountain Lake Acquisition Corp.

The borrowing is tied to the Mountain Lake business combination at both ends: at closing AVAT pledges approximately 5.6 million AVAX at an Initial Collateral Ratio of 200%, the loaned assets may be drawn only after closing and once the lender holds that collateral, and AVAT intends to use the proceeds to finance closing costs. Collateral sits in a segregated custody account at Anchorage Digital Bank N.A. A 180% Margin Call Limit triggers a top-up, a 160% Default Limit lets the lender declare default, and above 230% for thirty continuous days AVAT may reclaim collateral.

This is a three-month backstop extension, not a sign the deal is failing: the registration statement went effective May 14, 2026 and the business combination vote is already scheduled for June 4, 2026, eight days before this meeting. The proxy states that if the combination closes before June 16, 2026 the company will not redeem Class A public shares submitted for redemption solely in connection with this extension meeting, so holders redeeming here risk having that election voided by a timely closing. The board will only adopt the extension if it concludes the deal cannot close by June 16.

Putting the quarterly report into the proxy record is how a SPAC hands holders the trust figure they are about to vote against. Interest earned on trust of $2,113,587 in the quarter, against general and administrative expenses of $389,571, produced net income of $1,724,016, and total shareholders' deficit widened to $1,124,341. Total liabilities are $1,340,652, including a deferred underwriting fee of $1,000,000. The redemption value per share, not the customary round number, is the figure a redeeming holder receives.

This is a bridge to a deal already before holders, not a search extension. On October 1, 2025 the company signed a Business Combination Agreement, amended January 13, 2026, with Avalanche Treasury Corporation and related entities; its Form S-4 was declared effective May 14, 2026 and a separate general meeting to approve the combination is set for June 4, 2026. September 16, 2026 is the CEILING the extension would create, and the board may fix an earlier date. The same document names June 16, 2026 as the date by which the closing conditions must be satisfied or waived.

The financing is denominated partly in tokens, not only cash: under Company Unit Subscription Agreements dated October 1, 2025, investors subscribed for approximately $216 million of Company Class A units at $10.00 each, payable in cash, USD Coin or AVAX. The Foundation Transaction is a sale of 7,317,965.61 AVAX tokens by the Avalanche foundation entities to the Company, for which 3,000,000 Foundation Shares of Pubco Class A stock are issued at closing; Seller Related Parties separately contributed 1,960,040 AVAX for 5,805,638 Company Units.