Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 146

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 146
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 See the 2025 Proxy Statement for additional information about the further extension of our Combination
Period.

Business
Combination with EEW

On
September 5, 2024, we entered into the 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 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 Business Combination Agreement) 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 Pubco, (b) Pubco shall acquire all of EEW Ordinary
Shares from the Sellers in exchange for newly issued ordinary shares of Pubco, par value $0.0001 per share, all upon the terms and subject
to the conditions set forth in the Business Combination Agreement and in accordance with the applicable provisions of the Companies Act
and the laws of England and Wales, and any outstanding convertible securities of EEW will be terminated; and (c) as a result of the Transactions,
our Company and EEW each will become a wholly-owned subsidiary of Pubco, and Pubco will become a publicly traded company upon the Closing.

23

For
a full description of the Business Combination Agreement and the proposed Transactions, please see Item 1. “Business”.

Results
of Operations

Our
entire activity from inception up to March 31, 2025, relates to our formation, Initial Public Offering, the search for a target business
and the consummation of an initial Business Combination, such as the Transactions with EEW. We will not be generating any operating revenues
until the closing and completion of our initial Business Combination, at the earliest. We generate non-operating income in the form of
interest income on cash and cash equivalents or investments from the proceeds derived from the Initial Public Offering and the Private
Placement, which are partially offset by operating expenses and related party administrative expenses. We incur increased expenses as
a result of being a public company (for legal, financial reporting,