Will there be a lock‑up period for insiders or existing shareholders, and what are its terms?

Lock‑up – what the filing tells us

The press release on McKinley Acquisition Corp’s (MKLY) IPO does not spell out a specific lock‑up agreement for insiders or existing shareholders. However, SPACs of this size and structure customarily impose a standard post‑combination lock‑up on any shares held by the sponsor, management team, and pre‑IPO investors. In most recent SPACs the lock‑up runs 180 days (≈ 6 months) after the consummation of the business combination and often includes a “sell‑back” right that lets the sponsor redeem a portion of the shares at the IPO price if the market price falls below that level.

Trading implications

• Supply‑side constraint: Assuming a 180‑day lock‑up, the market can expect a limited amount of insider‑sell pressure during the early post‑combination period. This scarcity tends to support the share price, especially if the combination is viewed positively by the market.
• Liquidity of rights: Once the units split, the Class A ordinary shares (MKLY) and the rights (MKLYR) trade separately. The rights are typically more liquid in the first few weeks, while the ordinary shares may see a modest uptick in demand as the lock‑up expires and the redemption window narrows.
• Actionable view: Keep an eye on the business‑combination announcement date. If the combination is set for, say, Q4 2025, the 180‑day lock‑up would run into early 2026, capping potential insider dilution until then. Anticipate a re‑accumulation of buying pressure as the lock‑up window closes, and consider positioning ahead of that date (e.g., modest long‑bias or buying on pull‑backs) while remaining mindful of the SPAC’s redemption levels and overall market sentiment toward the deal.