Company: COPL-UN
Filing Date: 2025-02-03
Form Type: S-1/A
Source: 0001829126-25-000620
Chunk: 103

Company: Copley Acquisition Corp
Filing Date: 2025-02-03
Form: S-1/A
Chunk 103
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 investment, even if our public shares have lost significant value. Accordingly, our management team, which owns interests in our sponsor, may have an economic incentive that differs from that of the public shareholders to pursue and consummate an initial business combination rather than to liquidate and to return all of the cash in the trust to the public shareholders, even if that business combination were with a riskier or less-established target business. The non-managing sponsor member will share in any appreciation of the founder shares through its membership interest in the sponsor if we successfully complete a business combination. Accordingly, the non-managing sponsor member’s interest in the founder shares owned by it indirectly through its membership interest in the sponsor may provide it with an incentive to vote any public shares it owns in favor of a business combination, and make a substantial profit on such interest, even if the business combination is with a target that ultimately declines in value and is not profitable for other shareholders. For the foregoing reasons, you should consider our management team’s financial incentive to complete an initial business combination when evaluating whether to redeem your shares prior to or in connection with the initial business combination.

The personal and financial interests of our officers and directors may influence their motivation in identifying and selecting a target business combination, completing an initial business combination and influencing the operation of the business following the initial business combination.

The ownership interest of our sponsor may change, and our sponsor may divest its ownership interest in us before identifying a business combination, which could deprive us of key personnel and advisors.

Our sponsor is a limited liability company of which Chief Legal Officer Tok Li is the manager and several of our executive officers and directors are indirect owners of membership interests. Mr. Li holds voting and investment discretion with respect to the ordinary shares, placement units or securities held of record by the sponsor, and all our officers and directors as well as the non-managing sponsor member own individual economic interests in our sponsor. Each of our officers’ and directors’ and the non-managing sponsor member’s membership interests in our sponsor tracks our underlying securities on a 1:1 basis. However, this may change as there are no contractual restriction on the sponsor’s, Mr. Li’s nor the non-manager sponsor member’s ability, acting together, to share, sell or otherwise dispose of part or all of the interests in our sponsor or held by our sponsor. As a result, there is a risk that our sponsor (or Mr. Li or the non-managing sponsor member, acting together) may divest their ownership or economic interests in us or