Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 17

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 17
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10.30, 10.31, 10.32 and 10.33, respectively, and are incorporated herein by reference, and the foregoing descriptions of the EEW Lock-Up
Agreement, Second Insider Letter Amendment, Sponsor Agreement, and EEW Non-Competition Agreement are qualified in their entirety by reference
thereto.

9

Effecting
Our Initial Business Combination

General

We
are not presently engaged in, and we will not engage in, any operations for an indefinite period of time following the Initial Public
Offering. We intend to effectuate our initial Business Combination (such as the EEW Business Combination) using cash from the proceeds
of the Initial Public Offering and the Private Placement, the proceeds of the sale of our Ordinary Shares in connection with our initial
Business Combination (pursuant to any forward purchase agreements or backstop agreements we may enter into following the closing of the
Initial Public Offering or otherwise), shares issued to the owners of the target, debt issued to bank or other lenders or the owners
of the target, or a combination of the foregoing. We may seek to complete our initial Business Combination with a company or business
that may be financially unstable or in its early stages of development or growth, which would subject us to the numerous risks inherent
in such companies and businesses.

If
our initial Business Combination is paid for using equity or debt securities, or not all of the funds released from the Trust Account
are used for payment of the consideration in connection with our initial Business Combination or used for redemptions of our Public Shares,
we may use the balance of the cash released to us from the Trust Account following the closing for general corporate purposes, including
for maintenance or expansion of operations of the post-transaction company, the payment of principal or interest due on indebtedness
incurred in completing our initial Business Combination, to fund the purchase of other companies or for working capital.

We
may pursue an initial Business Combination target in any industry. Although our Management assess the risks inherent in a particular
target business with which we may combine, we cannot assure you that this assessment will result in our identifying all risks that a
target business may encounter. Furthermore, some of those risks may be outside of our control, meaning that we can do nothing to control
or reduce the chances that those risks will adversely affect a target business.

We
may seek to raise additional funds through a private offering of debt or equity securities in connection with the completion of our initial
Business Combination and we may