Company: COPL-UN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001829126-25-006317
Chunk: 23

Company: Copley Acquisition Corp
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 During the period from
November 26, 2024 (inception) through May 2, 2025, the Sponsor paid $276,803 on behalf of the Company, of which $25,000 was paid in exchange
for the issuance of Founder Shares and $251,803 was transferred into the Promissory Note. As of June 30, 2025 and December 31, 2024,
the amount due to the related party was $0 and $72,773, respectively.

Promissory Note – Related Party

On December 3, 2024, the Sponsor issued an unsecured promissory note to the Company (the “Promissory Note”), pursuant to which the Company may borrow up to an aggregate principal amount of $700,000. On April 18, 2025, the Promissory Note was amended and restated, resulting in a reduction of the maximum aggregate principal amount to $525,000. The Promissory Note is non-interest bearing and payable on the earlier of (i) December 31, 2025, or (ii) the consummation of the Initial Public Offering. After borrowing under the Promissory Note, the loans will be repaid upon completion of the Initial Public Offering out of the offering proceeds not held in the Trust Account.

As of December 31, 2024, there were no
amounts outstanding under the Promissory Note. On May 2, 2025, the $251,803
balance due to the Sponsor was transferred into the Promissory Note. On May 30, 2025, $105,194
of these borrowings were repaid using proceeds not held in the Trust Account, resulting in a balance of $146,609,
which was transferred into a Working Capital Loan on June 12, 2025. Following the repayment and transfer, the Promissory Note
was settled in full, resulting in no balance as of June 30, 2025, and no further borrowings are permitted under its terms.

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