Company: COPL-UN
Filing Date: 2025-04-01
Form Type: S-1/A
Source: 0001829126-25-002247
Chunk: 340

Company: Copley Acquisition Corp
Filing Date: 2025-04-01
Form: S-1/A
Chunk 340
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 consequences described above in respect to our ordinary shares by making either (i)
a timely QEF election to include in income its pro rata share of our net capital gains (as long-term capital gain) and other earnings
and profits (as ordinary income), on a current basis, in each case whether or not distributed, in the taxable year of the U.S. holder
in which or with which our taxable year ends or (ii) a valid “mark-to-market” election. A U.S. holder may make a separate
election to defer the payment of taxes on undistributed income inclusions under the QEF rules, but if deferred, any such taxes will be
subject to an interest charge.

A U.S. holder may not make a
QEF election with respect to its warrants to acquire our ordinary shares. As a result, if a U.S. holder sells or otherwise disposes of
such warrants (other than upon exercise of such warrants for cash), any gain recognized generally will be subject to the special tax
and interest charge rules treating the gain as an excess distribution, as described above, if we were a PFIC at any time during the period
the U.S. holder held the warrants. If a U.S. holder that exercises such warrants properly makes and maintains a QEF election with respect
to the newly acquired ordinary shares (or has previously made a QEF election with respect to our ordinary shares), the QEF election will
apply to the newly acquired ordinary shares, but the adverse tax consequences relating to PFIC shares, adjusted to take into account
the current income inclusions resulting from the QEF election, will continue to apply with respect to such newly acquired ordinary shares
(which generally will be deemed to have a holding period for purposes of the PFIC rules that includes the period the U.S. holder held
the warrants), unless the U.S. holder makes a purging election under the PFIC rules. One type of purging election creates a deemed sale
of such shares at their fair market value. The gain recognized on account of such purging election will be subject to the special tax
and interest charge rules treating the gain as an excess distribution, as described above. Under another type of purging election, an
electing U.S. holder will be treated as having received as an excess distribution its ratable share of our earnings and profits determined
for U.S. federal income tax purposes. In order for a U.S. holder to make the second election, we must also be