Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 180

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 180
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 Restated
Charter. Such an amendment would require the approval of our Public Shareholders, who will be provided the opportunity to redeem all
or a portion of their Public Shares in connection with the vote on such approval. Such redemptions will decrease the amount held in our
Trust Account and our capitalization. See the 2025 Proxy Statement for additional information about the further extension
of our Combination Period.

Founder
Share Conversions

On
October 19, 2023, following the approval of the Founder Share Amendment Proposal by our shareholders at the 2023 EGM, we issued an aggregate
of 600,000 Class A Ordinary Shares to the Sponsors upon the conversion of an equal number of Class B Ordinary Shares held by the Sponsors
as Founder Shares in the 2023 Founder Share Conversion.

On
July 24, 2024, in connection with the 2024 EGM and the 2024 Redemptions, the Sponsors also converted an aggregate of 2,600,000 Founder
Shares on a one-for-one basis into Class A Ordinary Shares in the 2024 Founder Share Conversion.

The
Class A Ordinary Shares issued in the Founder Share Conversions are subject to the same restrictions as applied to the Class B Ordinary
Shares before the Founder Share Conversions, including the
Sponsors’ agreement not to transfer, assign or sell any of its Founder Shares until the earlier to occur of: (i) one year after
the completion of a Business Combination or (ii) the date on which we complete a liquidation, merger, capital share exchange or similar
transaction that results in our shareholders having the right to exchange their Ordinary Shares
for cash, securities or other property. Notwithstanding the foregoing, if the last reported sale price of the Class A Ordinary
Shares equals or exceeds $12.00 per share (as adjusted for share splits, share dividends, reorganizations, recapitalizations and
the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Business Combination, the Founder
Shares will be released from the lock-up.

Following
the Sponsor Handover, the Founder Share Conversions and the Extension Redemptions, there were 5,681,485 Class
A Ordinary Shares and 2,110,122 Class B Ordinary Shares issued and outstanding and the Legacy Sponsor
and Sponsor hold approximately 28.45% and 39.70%, respectively, of the issued and outstanding Ordinary