Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 135

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 135
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 closing of
the Private Placement, the Institutional Anchor Investors paid the Legacy Sponsor $280,000 for the transfer of an aggregate of 186,667
Private Placement Warrants, which transfer will take place upon the closing of the initial Business Combination. In connection with the
partial exercise of the Over-Allotment option, the Legacy Sponsor purchased an additional 165,398 Private Placement Warrants at a purchase
price of $1.50 per whole Private Placement Warrant.

Each
Private Placement Warrant is identical to the Public Warrants, except there are no redemption rights or liquidating distributions from
the Trust Account with respect to Private Placement Warrants, which will expire worthless if the Company does not consummate a Business
Combination within the Combination Period.

NOTE
5 - RELATED PARTY TRANSACTIONS

Founder
Shares

On
March 9, 2021, the Company issued an aggregate of 5,750,000 Class B Ordinary Shares (the “Founder Shares”) to the Legacy
Sponsor for an aggregate purchase price of $25,000. Also, on May 13, 2021, the Legacy Sponsor transferred an aggregate of 721,402 Founder
Shares to the Company’s independent directors at their original issue price. The Founder Shares include an aggregate of up to 750,000
shares subject to forfeiture by the Legacy Sponsor to the extent that the Over-Allotment Option was not exercised in full or in part,
so that the Legacy Sponsor would collectively own, on an as-converted basis, 20% of the Company’s issued and outstanding shares
after the Initial Public Offering. On November 30, 2021, the underwriters partially exercised the Over-Allotment Option to purchase an
additional 1,240,488 Units. As a result, the Company forfeited 439,878 Class B Ordinary Shares. On October 19, 2023, the Sponsors converted
an aggregate of 600,000 Founder Shares on a one-for-one basis into Class A Ordinary Shares in the 2023 Founder Share Conversion. As of
December 31, 2024 and 2023, the Company had 2,110,122 Class B Ordinary Shares issued and outstanding.

Pursuant
to the Letter Agreement, the Sponsors have agreed not to transfer, assign or sell any of their Founder Shares until the earlier to occur
of: (i) one year after the completion of a Business Combination or (ii) the date on which the