Company: COPL-UN
Filing Date: 2025-04-01
Form Type: S-1/A
Source: 0001829126-25-002247
Chunk: 335

Company: Copley Acquisition Corp
Filing Date: 2025-04-01
Form: S-1/A
Chunk 335
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is satisfied, then the redemption will be treated as a corporate distribution and the tax effects will be as described under “—
U.S. Holders — Taxation of Distributions,” above. After the application of those rules, any remaining tax basis of the U.S.
holder in the redeemed Class A ordinary shares will be added to the U.S. holder’s adjusted tax basis in its remaining shares, or,
if it has none, to the U.S. holder’s adjusted tax basis in its warrants or possibly in other shares constructively owned by it.

U.S. holders who actually or
constructively own five percent (or, if our Class A ordinary shares are not then publicly traded, one percent) or more of our shares
(by vote or value) may be subject to special reporting requirements with respect to a redemption of Class A ordinary shares, and such
holders should consult with their own tax advisors with respect to their reporting requirements.

<div align='center'>204</div>

Exercise, Lapse or Redemption of a Warrant

Subject to the PFIC rules discussed
below and except as discussed below with respect to the cashless exercise of a warrant, a U.S. holder generally will not recognize gain
or loss upon the acquisition of an ordinary share on the exercise of a warrant for cash. A U.S. holder’s tax basis in a Class A
ordinary share received upon exercise of the warrant generally will be an amount equal to the sum of the U.S. holder’s initial
investment in the warrant (which will equal the sum of the tax basis of each one-half warrant that must be combined to make a whole warrant,
as described above under “— Allocation of Purchase Price and Characterization of a Unit”) and the exercise price of
such warrant. The U.S. holder’s holding period for a Class A ordinary share received upon exercise of the warrant will begin on
the date following the date of exercise (or possibly the date of exercise) of the warrants and will not include the period during which
the U.S. holder held the warrants. If a warrant is allowed to lapse unexercised, a U.S. holder generally will recognize a capital loss
equal to such holder’s tax basis in the warrant.

The tax consequences of a cashless
exercise of a warrant are not clear under current law. Subject to the PFIC rules discussed below, a cashless exercise may not be taxable,
either because the exercise is not a realization event or because the exercise is treated as a recapitalization for U