Company: COPL-UN
Filing Date: 2025-04-01
Form Type: S-1/A
Source: 0001829126-25-002247
Chunk: 96

Company: Copley Acquisition Corp
Filing Date: 2025-04-01
Form: S-1/A
Chunk 96
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 U.S. foreign investment regulations and review by a U.S. government entity. Certain federally
licensed businesses in the United States, such as broadcasters and airlines, may be subject to rules or regulations that limit foreign
ownership. In addition, CFIUS is an interagency committee authorized to review certain transactions involving foreign investment in the
United States by foreign persons in order to determine the effect of such transactions on the national security of the United States.
We may be considered a “foreign person” under such rules and regulations and any proposed business combination between us
and a U.S. business engaged in a regulated industry or which may affect national security could be subject to such foreign ownership
restrictions and/or CFIUS review.

The scope of CFIUS was expanded by the Foreign Investment Risk Review Modernization Act of 2018 (“FIRRMA”) to include certain non-passive, non-controlling investments in sensitive U.S. businesses and certain acquisitions of real estate even with no underlying U.S. business. FIRRMA and subsequent implementing regulations that are now in force also subject certain categories of investments to mandatory filings. If our potential initial business combination with a U.S. business falls within the scope of foreign ownership restrictions, we may be unable to consummate a business combination with such business.

In addition, if our potential business combination falls within CFIUS’s jurisdiction, we may be required to make a mandatory filing, determine to submit a voluntary notice to CFIUS, or proceed with the initial business combination without notifying CFIUS and then bear the risk of CFIUS intervention, before or after closing the initial business combination. CFIUS may decide to block or delay our initial business combination, impose conditions to mitigate national security concerns with respect to such initial business combination or order us to divest all or a portion of a U.S. business of the combined company if we had proceeded without first obtaining CFIUS clearance. The foreign ownership limitations, and the potential impact of CFIUS, may limit the attractiveness of a transaction with us or prevent us from pursuing certain initial business combination opportunities that we believe would otherwise be beneficial to us and our shareholders. As a result, the pool of potential targets with which we could complete an initial business combination may be limited and we may be adversely affected in terms of competing with other special purpose acquisition companies which do not have similar foreign ownership issues.

Moreover, the process
of government review, whether by CFIUS or otherwise, could be lengthy. Because we only have 18 months (or