Company: CDAQF
Filing Date: 2025-03-13
Form Type: PRE 14A
Source: 0001493152-25-010116
Chunk: 24

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-13
Form: PRE 14A
Chunk 24
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 that we may not redeem Public Shares to the extent that such redemption would result in us having net tangible assets of less than $5,000,001. Without the Redemption Limitation Amendment, the Board may not be able to proceed with the Third Extension or complete the EEW Business Combination or another Business Combination if, following the Third Extension Redemptions or redemptions in or upon the consummation of the EEW Business Combination, we have net tangible assets of less than $5,000,00, even if our shareholders approve the Third Extension and the EEW Business Combination, or if all contractual conditions to closing the EEW Business Combination are met.

Why are we proposing the Adjournment Proposal?

If any of the Third Extension Amendment Proposal, the Redemption Limitation Amendment Proposal or the Auditor Ratification Proposal are not approved by the shareholders, we may put the Adjournment Proposal to a vote in order to seek additional time to obtain sufficient votes in support of the Third Extension Amendment Proposal, the Redemption Limitation Amendment Proposal or the Auditor Ratification Proposal, as needed.

If the Adjournment Proposal is not approved by our shareholders, the Board may decide not to adjourn the Meeting to a later date or dates, or indefinitely, for the purpose of soliciting additional proxies. In such event, the Third Extension could not be completed and if we do not complete a Business Combination within the Combination Period, we would cease all operations except for the purpose of winding up, redeeming 100% of the outstanding Public Shares for cash and, subject to the approval of our remaining shareholders and the Board, dissolving and liquidating. For the avoidance of doubt, if put forth at the Meeting, the Adjournment Proposal will be the first and only proposal voted on and the Third Extension Amendment Proposal, the Redemption Limitation Amendment Proposal and the Auditor Ratification Proposal will not be submitted to the shareholders for a vote at such time.

Why should I vote “FOR” the Third Extension Amendment Proposal?

Our Board believes shareholders should have an opportunity to evaluate the Business Combination, including the EEW Business Combination, and that our shareholders will benefit from our Company consummating the Business Combination; consequently, the Board is proposing the Third Extension Amendment Proposal to extend the date by which we have to complete the Business Combination until the Third Extended Date and give us more opportunity to complete the Business Combination, including the EEW Business Combination. Without the Third Extension, we believe that we will not be able to complete the Business Combination on or before the Second Extended Date.