Company: COPL-UN
Filing Date: 2025-06-13
Form Type: 10-Q
Source: 0001829126-25-004483
Chunk: 20

Company: Copley Acquisition Corp
Filing Date: 2025-06-13
Form: 10-Q
Item: Part I, Item 1
Chunk 20
---
 2025, the $251,803 balance due to the Sponsor was transferred into the Promissory Note.

Working Capital Loans

In order to fund working capital deficiencies or
finance transaction costs in connection with initial Business Combination, the Sponsor or an affiliate of the Sponsor or certain
officers and directors may, but are not obligated to, loan the Company funds as may be required, from time to time or at any time,
in whatever amount they deem reasonable in their sole discretion (“Working Capital Loans”). In addition, the Sponsor or
an affiliate of the Sponsor or certain officers and directors may loan the Company funds of up to $3,450,000
(assuming the underwriters exercise their over-allotment option, and no public shares have been redeemed at the time of each
extension) to cover the cost of extension options to allow additional time to complete an initial Business Combination
(“Extension Loans”). Such Working Capital Loans and Extension Loans may be convertible into units at a price of $7.00
per unit at the option of the lender at the time of the Business Combination. The units would be identical to the Private Placement
Units and include one-half of one private warrant (each a “Working Capital Warrant” or “Extension Warrant”,
respectively). If the Company does not complete an initial Business Combination, the Working Capital Loans and Extension Loans would
be repaid out of funds not held in the Trust Account, and only to the extent available. Except for the foregoing, the terms of such
Working Capital Loans and Extension Loans by the Sponsor or its affiliates, or officers and directors, if any, have not been
determined and no written agreements exist with respect to such loans (except as disclosed below). As of March 31, 2025 and December 31, 2024, no
Working Capital Loans or Extension Loans were outstanding.

On June 12, 2025, the Company entered into a Working Capital Loan with the Sponsor, pursuant to which the Company may borrow up to $450,000.
The Working Capital Loan is non-interest bearing and matures on the earlier of (i) the date on which the Business Combination is consummated
and (ii) the Company’s liquidation and is subject to conversion into units (as disclosed above). On June 12, 2025, the $146,609 balance on the Promissory Note was transferred into the
Working Capital Loan.

    14

NOTE 6. COMMITMENTS AND CONTINGENCIES