Company: COPL-UN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001829126-25-006317
Chunk: 46

Company: Copley Acquisition Corp
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 46
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,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 of
the Sponsor or certain officers and directors may loan the Company funds of up to $3,450,000 (assuming the underwriters exercise their
over-allotment option, and no public shares have been redeemed at the time of each extension) to cover the cost of extension options to
allow additional time to complete an initial Business Combination (“Extension Loans”). Such Working Capital Loans and Extension
Loans may be convertible into units at a price of $7.