Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 30

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 30
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 our initial Business Combination within the Combination Period or (ii) with
respect to any other material provisions relating to shareholders’ rights or pre-initial Business Combination activity, unless
we provide our Public Shareholders with the opportunity to redeem their Public Shares upon approval of any such amendment at a per-share
price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held
in the Trust Account and not previously released to us to pay our taxes, divided by the number of then outstanding Public Shares. However,
we may not redeem our Public Shares in an amount that would cause our net tangible assets to be less than $5,000,001 upon closing of
a Business Combination. If this optional redemption right is exercised with respect to an excessive number of Public Shares such that
we cannot satisfy the net tangible asset requirement, we would not proceed with the amendment or the related redemption of our Public
Shares at such time.

We
expect that all costs and expenses associated with implementing our plan of dissolution, as well as payments to any creditors, will be
funded from amounts remaining out of the $27,720 of proceeds held outside the Trust Account
(as of December 31, 2024), although we cannot assure you that there will be sufficient funds for such purpose. However, if those funds
are not sufficient to cover the costs and expenses associated with implementing our plan of dissolution, to the extent that there is
any interest accrued in the Trust Account not required to pay income taxes on interest income earned on the Trust Account balance, we
may request the trustee to release to us an additional amount of up to $50,000 of such accrued interest to pay those costs and expenses.

The
per-share redemption amount in the Trust Account is approximately $11.14 as of December 31, 2024 (before taxes payable and up to $50,000
of interest income to pay dissolution expenses). The funds in the Trust Account could, however, become subject to the claims of our creditors,
which would have higher priority than the claims of our Public Shareholders. We cannot assure you that the actual per-share redemption
amount received by shareholders will not be substantially less than $11.14. While we intend to pay such amounts, if any, we cannot assure
you that we will have funds sufficient to pay or provide for all creditors’ claims.

Although
we seek to have all vendors, service providers (other than Withum, our independent registered public accounting firm),