Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 26

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 26
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 In addition, the tender offer will be conditioned on Public Shareholders not tendering more
than the number of Public Shares we are permitted to redeem. If Public Shareholders tender more shares than we have offered to purchase,
we will withdraw the tender offer and not complete the initial Business Combination.

14

Upon
the public announcement of our initial Business Combination, if we elect to conduct redemptions pursuant to the tender offer rules, we
and our Sponsor will terminate any plan established in accordance with Rule 10b5-1 to purchase our Public Shares in the open market,
in order to comply with Rule 14e-5 under the Exchange Act.

We
intend to require our Public Shareholders seeking to exercise their redemption rights, whether they are record holders or hold their
Public Shares in “street name,” to, at the holder’s option, either deliver their share certificates to our transfer
agent or deliver their Public Shares to our transfer agent electronically using the DWAC System, prior to the date set forth in the proxy
materials or tender offer documents, as applicable. In the case of proxy materials, this date may be up to two business days prior to
the scheduled vote on the proposal to approve the initial Business Combination. In addition, if we conduct redemptions in connection
with a shareholder vote, we intend to require a Public Shareholder seeking redemption of its Public Shares to also submit a written request
for redemption to our transfer agent two business days prior to the scheduled vote in which the name of the beneficial owner of such
shares is included. The proxy materials or tender offer documents, as applicable, that we will furnish to holders of our Public Shares
in connection with our initial Business Combination will indicate whether we are requiring Public Shareholders to satisfy such delivery
requirements. We believe that this will allow our transfer agent to efficiently process any redemptions without the need for further
communication or action from the redeeming Public Shareholders, which could delay redemptions and result in additional administrative
cost. If the proposed initial Business Combination is not approved and we continue to search for a target company, we will promptly return
any certificates or shares delivered by Public Shareholders who elected to redeem their shares.

Our
Amended and Restated Charter provides that in no event will we redeem our Public Shares in an amount that would cause our net tangible
assets to be less than $5,000,001. In addition, our proposed initial Business Combination may impose a minimum cash requirement for (i)
cash consideration to be