Company: CDAQF
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001641172-25-000430
Chunk: 23

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 23
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 the EEW Business Combination, see the EEW Business Combination Form 8-K. Accordingly, the Board is proposing the Third Extension Amendment Proposal to amend our Amended and Restated Charter, as provided in the resolutions set forth in Annex Ahereto, to extend the date by which we must (i) consummate a Business Combination, (ii) cease our operations if we fail to complete such Business Combination, and (iii) redeem or repurchase 100% of the Public Shares sold in our IPO from April 19, 2025 to April 20, 2026 (or such earlier date as determined by the Board).

You are not being asked to vote on the Business Combination at this time. If the Charter Amendment Proposals are approved and you do not elect to redeem your Public Shares, provided that you are a shareholder on the record date for a meeting to consider the Business Combination, you will retain the right to vote on the Business Combination when it is submitted to shareholders and the right to redeem your Public Shares for cash in the event the Business Combination is approved and completed or we have not consummated a Business Combination by the Third Extended Date.

Why are we proposing the Redemption Limitation Amendment Proposal?

The Amended and Restated Charter provides that 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