Company: CDAQF
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001641172-25-000430
Chunk: 24

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 24
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 proxies. In such event, the Third Extension could not be completed and if we do not complete a Business Combination within the Combination Period, we would cease all operations except for the purpose of winding up, redeeming 100% of the outstanding Public Shares for cash and, subject to the approval of our remaining shareholders and the Board, dissolving and liquidating. For the avoidance of doubt, if put forth at the Meeting, the Adjournment Proposal will be the first and only proposal voted on and the Third Extension Amendment Proposal, the Redemption Limitation Amendment Proposal and the Auditor Ratification Proposal will not be submitted to the shareholders for a vote at such time.

Why should I vote “FOR” the Third Extension Amendment Proposal?

Our Board believes shareholders should have an opportunity to evaluate the Business Combination, including the EEW Business Combination, and that our shareholders will benefit from our Company consummating the Business Combination; consequently, the Board is proposing the Third Extension Amendment Proposal to extend the date by which we have to complete the Business Combination until the Third Extended Date and give us more opportunity to complete the Business Combination, including the EEW Business Combination. Without the Third Extension, we believe that we will not be able to complete the Business Combination on or before the Second Extended Date. If that were to occur, we would be forced to liquidate and dissolve following the Second Extended Date.

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Our Amended and Restated Charter provide that if any amendment is made to our Amended and Restated Charter to modify (i) the substance or timing of our obligation to redeem 100 percent of the Public Shares if we not consummate a Business Combination within the Combination Period or (ii) any other provisions relating to the shareholders’ rights or pre-Business Combination activity, we will provide our Public Shareholders, other than the Sponsor, our officers or directors, and the holders of the Founder Shares prior to the Initial Public Offering with the opportunity to redeem their Public Shares upon the approval or effectiveness 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. We believe that this provision was included to protect our shareholders from having to sustain their investments for an unreasonably long period if we failed to find a suitable Business Combination in the timeframe contemplated by the Amended and Restated Charter.

Why should I vote “FOR” the