Company: COPL-UN
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009051
Chunk: 9

Company: Copley Acquisition Corp
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 guidance on redeemable equity instruments, redemption provisions not solely
within the control of a company require ordinary shares subject to redemption to be classified outside of permanent equity. Accordingly,
all of the Public Shares are presented as temporary equity, outside of the shareholders’ deficit section of the Company’s
balance sheet. Given that the Class A ordinary shares sold as part of the units in the offering were issued with other freestanding instruments,
the initial carrying value of Class A ordinary shares classified as temporary equity were the allocated proceeds determined in accordance
with ASC 470-20 (defined below). The accretion or remeasurement is recognized as a reduction to retained earnings, or in absence of retained
earnings, additional paid-in capital. Accretion associated with the redeemable Class A ordinary shares is excluded from earnings per share
as the redemption value approximates fair value.

Each public shareholder may elect to redeem their
Public Shares without voting and, if they do vote, irrespective of whether they vote for or against the proposed transaction. In addition,
initial shareholders, directors and officers have entered into a letter agreement, pursuant to which they have agreed to waive their redemption
rights with respect to any founder shares and Public Shares held by them in connection with the completion of a Business Combination.

    7

The Company has determined not to have a minimum
net tangible asset requirement to consummate any Business Combination which could be subject to Rule 419 promulgated under the Securities
Act (defined in Note 2). Moreover, if the Company seeks to consummate an initial Business Combination with a target business that imposes
any type of working capital closing condition or requires the Company to have a minimum amount of funds available from the Trust Account
upon consummation of such initial Business Combination, its net tangible asset threshold may limit the Company’s ability to consummate
such initial Business Combination (as the Company may be required to have a lesser number of shares redeemed) and may force the Company
to seek third party financing which may not be available on terms acceptable to the Company or at all. As a result, the Company may not
be able to consummate such an initial Business Combination and the Company may not be able to locate another suitable target within the
applicable time period, if at all.

Business Combination

The Company will have until 18 months from the closing of the Initial Public Offering (which can be extended two times, each by an additional three months, for a total completion time of up to 24 months) (the “Completion