Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 159

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 159
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240,488 Over-Allotment Units pursuant to the partial
exercise of the Over-Allotment Option. The Over-Allotment Units were sold at an offering price of $10.00 per Over-Allotment Unit, generating
aggregate additional gross proceeds of $12,404,880 to us.

The
underwriters of the Initial Public Offering were entitled to a cash underwriting discount of 2.00% of the gross proceeds of the Initial
Public Offering, or $4,000,000 (or $4,600,000 if the Over-Allotment Option was exercised in full) pursuant to the terms of the underwriting
agreement we entered into in connection with the Initial Public offering (the “Underwriting Agreement”). In addition, the
underwriters were entitled to a deferred fee of three and half percent (3.50%) of the gross proceeds of the Initial Public Offering,
or $7,000,000 (or $8,050,000 if the Over-Allotment Option was exercised in full). The deferred fees were to become payable to the underwriters
from the amounts held in the Trust Account solely in the event that we complete a Business Combination, subject to the terms of the Underwriting
Agreement.

25

On
August 11, 2023 and August 14, 2023, we received formal confirmations from Citigroup Global Markets Inc. and J.P. Morgan Securities LLC,
informing us of their decisions to waive any entitlement they may have to their deferred underwriting fees payable held in the Trust
Account with respect to any Business Combination.

Investor
Subscription Agreement

On
September 6, 2023, we entered into the Polar Subscription Agreement with the Sponsor and Polar, pursuant to which Polar agreed to fund
up to $1,500,000 to us, subject to certain funding milestones. Once we have reached a defined milestone, upon on at least five (5) calendar
days’ prior written notice, the Sponsor may require a drawdown against Polar’s capital commitment, a Polar Capital Investment,
in order to meet the Sponsor’s commitment to us under a drawdown request. As of September 30, 2025 and December 31, 2024, we had
drawn $1,250,000, on the Polar Capital Investment that was fair valued at $227,273. The Polar Capital Investment will be repaid to Polar
by us upon the closing of an initial Business Combination.