Company: COPL-UN
Filing Date: 2025-04-01
Form Type: S-1/A
Source: 0001829126-25-002247
Chunk: 334

Company: Copley Acquisition Corp
Filing Date: 2025-04-01
Form: S-1/A
Chunk 334
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 are explained more fully below.

In determining whether any of
the foregoing tests are satisfied, a U.S. holder takes into account not only our shares actually owned by the U.S. holder, but also our
shares that are constructively owned by it. A U.S. holder may constructively own, in addition to shares owned directly, shares owned
by certain related individuals and entities in which the U.S. holder has an interest or that have an interest in such U.S. holder, as
well as any shares the U.S. holder has a right to acquire by exercise of an option, which would generally include Class A ordinary shares
which could be acquired pursuant to the exercise of the warrants. In order to meet the substantially disproportionate test, the percentage
of our outstanding voting shares actually and constructively owned by the U.S. holder immediately following the redemption of Class A
ordinary shares must, among other requirements, be less than 80% of the percentage of our outstanding voting shares actually and constructively
owned by the U.S. holder immediately before the redemption. Prior to our initial business combination, the Class A ordinary shares may
not be treated as voting shares for this purpose and, consequently, this substantially disproportionate test may not be applicable. There
will be a complete termination of a U.S. holder’s interest if either (i) all of our shares actually and constructively owned by
the U.S. holder are redeemed or (ii) all of our shares actually owned by the U.S. holder are redeemed and the U.S. holder is eligible
to waive, and effectively waives in accordance with specific rules, the attribution of shares owned by certain family members and the
U.S. holder does not constructively own any other shares. The redemption of the Class A ordinary shares will not be essentially equivalent
to a dividend if a U.S. holder’s conversion results in a “meaningful reduction” of the U.S. holder’s proportionate
interest in us. Whether the redemption will result in a meaningful reduction in a U.S. holder’s proportionate interest in us will
depend on the particular facts and circumstances. However, the IRS has indicated in a published ruling that even a small reduction in
the proportionate interest of a small minority shareholder in a publicly held corporation who exercises no control over corporate affairs
may constitute such a “meaningful reduction.” A U.S. holder should consult with its own tax advisors as to the tax consequences
of a redemption.

If none of the foregoing tests