Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 531

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 2
Chunk 531
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as of December 31, 2024.

Investor
Subscription Agreement

On
September 6, 2023, we entered into the Polar Subscription Agreement with the Sponsor and Polar, pursuant to which Polar agreed to fund
up to $1,500,000 to us, subject to certain funding milestones. Once we have reached a defined milestone, upon on at least five (5) calendar
days’ prior written notice, the Sponsor may require a drawdown against Polar’s capital commitment, a Polar Capital Investment,
in order to meet the Sponsor’s commitment to us under a drawdown request. As of December 31, 2024 and 2023, we had drawn $1,250,000
and $500,000, respectively, on the Polar Capital Investment that was fair
valued at $ 227,273 and $90,909, respectively. The Polar Capital Investment will be repaid to Polar
by us upon the closing of an initial Business Combination. Polar may elect to receive such repayment (i) in cash or (ii) in Class A Ordinary
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.

Insider
Letter

Our
Sponsors, Prior Directors and Officers, and directors and officers have entered into the Insider Letter, as amended by the Insider Letter
Amendment and the Second Insider Letter Amendment, with us, pursuant to which, they have waived their rights to liquidating distributions
from the Trust Account with respect to any Founder Shares held by them if we fail to complete our initial Business Combination within
the Combination Period. However, if the signatories to the Insider Letter acquire Public Shares in or after the Initial Public Offering,
they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares if we fail to complete our
initial Business Combination within the Combination Period.

Additionally,
pursuant to the Insider Letter, the Insider Letter Amendment and the Second Insider Letter Amendment, they will not propose any amendment
to our Amended and Restated Charter (i) to modify the substance or timing of our obligation to allow redemption in connection with our
initial Business Combination or to redeem 100% of our Public Shares