Avalanche Treasury Corp 8-K

What Happened

• Avalanche Treasury Corp (AVAT) filed an 8-K reporting that Avalanche Treasury Company, LLC signed a Master Lender Agreement with FalconX Charlie, Inc. (Master Lender Agreement dated March 20, 2026) and executed a loan term sheet on May 29, 2026 for a $25 million Open Loan (May 2026 Collateralized Open Loan). The Loan Fee is 7% per annum.
• At closing of AVAT’s pending business combination with Mountain Lake Acquisition Corp., AVAT will pledge approximately 5.6 million AVAX as collateral (Initial Collateral Ratio of 200%). Collateral will be held in a segregated account at Anchorage Digital Bank N.A. Under the agreement the Lender can margin call if the collateral ratio falls below 180% and may declare default if it falls below 160%; AVAT can request collateral return if the ratio exceeds 230% for 30 days. Staking of collateral is limited (max 75% staked; laddered epochs with at least 50% of staked position reverting to liquid status on a rolling seven‑day cycle).
• AVAT also made available its unaudited condensed financial statements for the three months ended March 31, 2026 (filed as Exhibits 99.1 and 99.2).

Key Details

• Loan amount: $25,000,000 (Open Loan, no fixed maturity).
• Loan fee: 7% per annum.
• Collateral: ~5.6 million AVAX pledged at closing (Initial Collateral Ratio = 200%).
• Risk thresholds: Margin Call Limit 180%; Default Limit 160%; Refund Limit 230%. Collateral custody: Anchorage Digital Bank N.A.

Why It Matters

• This agreement creates a direct financial obligation and gives AVAT immediate potential access to $25M in cash or digital currency to help finance closing costs for the announced business combination.
• The pledged AVAX exposes AVAT to AVAX price volatility and margin-call risk: falling collateral ratios could require adding more collateral or trigger lender remedies.
• The 7% fee and the open‑loan structure (repayable/recallable at any time) affect AVAT’s financing cost and liquidity flexibility. Retail investors should note the collateral pledge and the newly disclosed quarter‑end financials as material items when assessing AVAT’s post‑combination balance sheet and liquidity position.