Company: COPL-UN
Filing Date: 2025-06-13
Form Type: 10-Q
Source: 0001829126-25-004483
Chunk: 7

Company: Copley Acquisition Corp
Filing Date: 2025-06-13
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 connection with a shareholder meeting called to approve the Business Combination (regardless of whether they vote for or against the
proposed business combination or do not vote at all) or (ii) by means of a tender offer.

All of the sold as part of the units in the Company’s
initial public offering contain a redemption feature which allows for the redemption of such Public Shares in connection with liquidation,
if there is a shareholder vote or tender offer in connection with initial business combination, and in connection with certain amendments
to the Company’s amended and restated memorandum and articles of association (as may be amended and restated from time to time).
In accordance with SEC 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. 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.

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