Company: CDAQF
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001641172-25-000430
Chunk: 52

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 52
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 Shares at a rate of one Class A Ordinary Share for each ten dollars of the Polar Capital Investment. In the event we liquidate without consummating a Business Combination, any amounts remaining in our cash accounts (excluding the Trust Account) will be paid by us to Polar within five (5) calendar days of the liquidation, and such amounts will be the sole recourse for Polar.

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On November 21, 2024, we issued the 2024 Promissory Note in the aggregate principal amount of up to $2,500,000 to the Sponsor. The 2024 Promissory Note was issued in connection with advances the Sponsor has previously made and may make in the future to us for working capital expenses. The 2024 Promissory Note bears no interest and is repayable in full upon the earlier of (i) the date on which we consummate an initial Business Combination and (ii) the date of our liquidation. If, prior to the Business Combination, the principal balance of the 2024 Promissory Note has not been paid in full, then, at the Sponsor’s option and subject to certain conditions, up to $1,375,000 of the unpaid principal amount of the 2024 Promissory Note may be converted into warrants to purchase Class A Ordinary Shares at a conversion price of $1.50 per warrant. Such warrants shall be identical to the Private Placement Warrants. These warrants and their underlying securities are entitled to the registration rights set forth in the 2024 Promissory Note. As of December 31, 2024, there was $1,115,000 outstanding under the 2024 Promissory Note.

Sponsor Handover

On August 30, 2023,our Sponsors entered into a Definitive Securities Purchase Agreement (the “ Sponsor Purchase Agreement”), and on August 31, 2023, our Sponsors consummated the transactions contemplated by the Sponsor Purchase Agreement (the “ Sponsor Handover”). Pursuant to the terms of the Sponsor Purchase Agreement, at the Sponsor Handover: (i) the Prior Sponsor transferred 3,093,036 Founder Shares and 4,645,398 Private Placement Warrants to our Sponsor; (ii) our Sponsor agreed to cause us to pay an aggregated amount of $300,000 in cash consideration upon closing of the Business Combination at the Prior Sponsor’s direction to entities or accounts as directed by the Prior Sponsor (including the repayment of $125,000 under the