Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 162

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 162
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 initial
    Business Combination;

    ●
    if we do not consummate
    the EEW Business Combination, we may attempt to simultaneously complete Business Combinations with multiple prospective targets,
    which may hinder our ability to complete our initial Business Combination and give rise to increased costs and risks that could negatively
    impact our operations and profitability;

    ●
    we
    may engage one or more of the underwriters of the Initial Public Offering or one of their respective affiliates to provide
    additional services to us after the Initial Public Offering, which may include acting as a financial advisor in connection with an
    initial Business Combination or as placement agent in connection with a related financing transaction. These financial incentives
    may cause them to have potential conflicts of interest in rendering any such additional services to us after the Initial Public
    Offering, including, for example, in connection with the sourcing and consummation of an initial Business Combination;

21

    ●
    we may attempt to complete
    our initial Business Combination with a private company about which little information is available, which may result in a Business
    Combination with a company that is not as profitable as we suspected, if at all;

    ●
    our Warrants are accounted
    for as derivative liabilities and are recorded at fair value upon issuance with changes in fair value each period reported in earnings,
    which may have an adverse effect on the market price of our Ordinary Shares or may make it more difficult for us to consummate an
    initial Business Combination;

    ●
    since our Initial Shareholders
    and Sponsor will lose their entire investment in us if our initial Business Combination is not completed (other than with respect
    to any Public Shares they may acquire during or after the Initial Public Offering), and because our Sponsors and Prior Directors
    and Officers may profit substantially even under circumstances in which our Public Shareholders would experience losses in connection
    with their investment, a conflict of interest may arise in determining whether a particular Business Combination target is appropriate
    for our initial Business Combination;

    ●
    the value of the Founder
    Shares following completion of our initial Business Combination is likely to be substantially higher than the nominal price paid
    for them, even if the trading price of our Ordinary Shares at such time is substantially less than $10.00 per Public Share; 

    ●
    resources could be wasted
    in researching acquisitions that are not completed, which could materially adversely affect subsequent attempts to locate and acquire
    or merge with