Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 857

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 5
Chunk 857
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4 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 connection with 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 their 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. Shares issued in connection with the Founder Share Conversions
are not registered under the Securities Act and will remain unregistered until registration is demanded by the Sponsors pursuant to the
Insider Letter, as amended by the Insider Letter Amendment and the Second Insider Letter Amendment, we entered into with our Sponsors,
Prior Directors and Officers, and directors and officers.

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.

For
more information on the Sponsor Handover, the Founder Share Conversions and the Founder Shares’ transfer restrictions, see “Item
1. Business.”

    (g)
    Use of Proceeds from the Initial Public Offering

For
a description of the use of proceeds generated in our Initial Public Offering and Private Placement, see Part II, Item 2 of our Quarterly
Report on Form 10-Q for the quarterly period ended September 30, 2021, as filed with the SEC on November 23, 2021. There has been no
material change