Company: COPL-UN
Filing Date: 2025-04-14
Form Type: S-1/A
Source: 0001829126-25-002621
Chunk: 122

Company: Copley Acquisition Corp
Filing Date: 2025-04-14
Form: S-1/A
Chunk 122
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. Assuming a trading price of $10.05 per share upon consummation of our initial business combination, the 5,000,000 founder shares (assuming the underwriter’s over-allotment option was not exercised) and the 517,143 placement shares held by our sponsor would have an aggregate value of $55,447,287.15. Even if the trading price of our Class A ordinary shares was as low as approximately $0.71 per share, and the placement warrants were worthless, the value of the founder shares and the placement shares held by our sponsor would be equal to the sponsor’s initial investment in us. As a result, our sponsor and the non-managing sponsor investors (if they participate) are likely to be able to recoup its investment in us and make a substantial profit on that 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 investors will share in any appreciation of the founder shares through their non-managing membership interests in the sponsor if we successfully complete a business combination. Accordingly, the non-managing sponsor investors’ interest in the founder shares owned by them indirectly through their membership interest in the sponsor may provide them with an incentive to vote any public shares they own 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. In addition, our non-managing sponsor investors (if any) may have different interests than other public shareholders due to their additional upfront investment in the company and their membership interests in the sponsor. 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.