Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 223

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 223
---
ating 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. As
of December 31, 2024 and 2023, we had drawn $1,250,000 and $500,000 under the Polar Capital Investment, respectively, that was fair valued
at $227,273 and $90,909, respectively.

Any
of the foregoing payments to our Sponsors, repayments of loans from our Sponsors, or affiliates of our Sponsors, or repayments of any
Working Capital Loans and the Polar Capital Investment prior to our initial Business Combination will be made using funds held outside
the Trust Account.

Non-Redemption
Agreements

Between
October 9, 2023 and October 19, 2023, we entered into the 2023 Non-Redemption Agreements with the Sponsor and unaffiliated third-party
investors in exchange for such investors agreeing not to redeem an aggregate of 4,998,734 Public Shares in connection with the vote to
approve the Charter Amendment Proposals at the 2023 EGM. In exchange for these commitments not to redeem the 2023 Non-Redeemed Shares,
the Sponsor agreed to transfer to such investors an aggregate of 749,810 Founder Shares held by the Sponsor promptly following the closing
of the Business Combination (but no later than two business days after the satisfaction of the requisite conditions to such transfer).

53

Between
July 17, 2024 and July 18, 2024, we entered into the 2024 Non-Redemption Agreements with our Sponsor and unaffiliated, third-party investors
in exchange for such investors agreeing not to redeem an aggregate of 2,475,000 Public Shares in connection with the vote to approve
the 2024 Extension Amendment Proposal at the 2024 EGM. In exchange for these commitments not to redeem the 2024 Non-Redeemed Shares,
the Sponsor agreed to transfer to such investors an aggregate of (i) 412,498 Founder Shares held by the Sponsor for the first five (5)
months of the extension of the Combination Period from July 19, 2024 to December 19, 2024 pursuant to the 2024 Extension Amendment Proposal
and (ii) 82,498 Founder Shares held by the Sponsor per month,