Company: COPL-UN
Filing Date: 2025-04-01
Form Type: S-1/A
Source: 0001829126-25-002247
Chunk: 337

Company: Copley Acquisition Corp
Filing Date: 2025-04-01
Form: S-1/A
Chunk 337
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 generally will be treated as a taxable disposition to the U.S. holder, taxed as described above
under “— Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Class A Ordinary Shares and Warrants.”

Possible Constructive Distributions

The terms of each warrant provide
for an adjustment to the number of ordinary shares for which the warrant may be exercised or to the exercise price of the warrant in
certain events, as discussed in the section of this prospectus captioned “Description of Securities — Redeemable Warrants
— Public Shareholders’ Warrants.” An adjustment which has the effect of preventing dilution generally is not taxable.
The U.S. holders of the warrants would, however, be treated as receiving a constructive distribution from us if, for example, the adjustment
increases the warrant holders’ proportionate interest in our assets or earnings and profits (e.g., through an increase in the number
of ordinary shares that would be obtained upon exercise) as a result of a distribution of cash to the holders of our ordinary shares
which is taxable to the U.S. holders of such ordinary shares as described under “— Taxation of Distributions” above.
Such constructive distribution would be subject to tax as described under that section in the same manner as if the U.S. holders of the
warrants received a cash distribution from us equal to the fair market value of such increased interest. For certain information reporting
purposes, we are required to determine the date and amount of any such constructive distributions. Recently proposed Treasury regulations,
which we may rely on prior to the issuance of final regulations, specify how the date and amount of constructive distributions are determined.

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Passive Foreign Investment Company Rules

A non-U.S. corporation will be
a PFIC for U.S. federal income tax purposes if at least 75% of its gross income in a taxable year, including its pro rata share of the
gross income of any corporation in which it is considered to own at least 25% of the shares by value, is passive income. Alternatively,
a non-U.S. corporation will be a PFIC if at least 50% of its assets in a taxable year of the non-U.S. corporation, ordinarily determined
based on fair market value and averaged quarterly over the year, including its pro rata share of the assets of any corporation in which
it is considered to own at least 25% of the shares by value, are held for