Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 178

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 178
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 to pay dissolution
expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish Public Shareholder’s
rights as shareholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii)
as promptly as reasonably possible following such redemption, subject to the approval of the remaining shareholders and our Board of
Directors, proceed to commence a voluntary liquidation and thereby a formal dissolution of our Company, subject in each case to our obligations
under Cayman Islands law to provide for claims of creditors and the requirements of applicable law. In the event of such distribution,
it is possible that the per share value of the assets remaining available for distribution will be less than approximately $11.14 per
Public Share (net of taxes paid or payable, as of December 31, 2024).

As
of December 31, 2024 and 2023, we held cash of $27,720 and $44,046, respectively, and current liabilities of $6,162,507 and $860,274,
respectively. Further, we expect to continue to incur significant costs in the pursuit of our initial Business Combination. We cannot
assure you that our plans to complete an initial Business Combination will be successful.

29

Recent
Developments

Between
December 31, 2024 through the date of this Report, we have drawn an additional $266,019 on the 2024 Promissory Note. The total aggregate
outstanding balance on the 2024 Promissory Note is $1,381,019.

On
March 5, 2025, Nasdaq filed a Form 25-NSE to delist our securities from Nasdaq.

On
March 13, 2025, we filed the 2025 Proxy Statement in connection with an upcoming extraordinary general meeting in lieu of an annual
general meeting of our shareholders to, among other things, seek (i) an extension of the Combination Period from April 19, 2025 to April
20, 2026 and (ii) to eliminate from the Amended and Restated Charter the Redemption Limitation.

Sponsor
Handover

On
August 30, 2023, our Sponsors entered into the Sponsor Purchase Agreement, and on August 31, 2023, our Sponsors consummated the Sponsor
Handover. Pursuant to the terms of the Sponsor Purchase Agreement, at the Sponsor Handover: (i) the