Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 410

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1C
Chunk 410
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 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 Shares.

EEW
Business Combination

On
September 5, 2024, we entered into the EEW Business Combination Agreement with the Purchaser Representative, EEW, the Sellers, the Seller
Representative and, upon execution of joinders thereto, Pubco and Merger Sub.

Pursuant
to the EEW Business Combination Agreement, subject to the terms and conditions set forth therein, at the Closing, (a) Merger Sub will
merge with and into our Company, with our Company continuing as the surviving entity, and as a result of the Merger, (i) we shall become
a wholly-owned subsidiary of Pubco, and (ii) each issued and outstanding security of our Company immediately prior to the Effective Time
(as defined in the EEW Business Combination) shall no longer be outstanding and shall automatically be cancelled, in exchange for the
right of the holder thereof to receive a substantially equivalent security of Pub