Company: CDAQF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023544
Chunk: 8

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 investors, the “Institutional Anchor Investors”)
purchased an aggregate of 20,000,000 Units in the Initial Public Offering. The Units were sold at an offering price of $10.00 per Unit,
generating gross proceeds of $200,000,000.

Simultaneously
with the closing of the Initial Public Offering, the Company consummated the sale of 4,666,667 warrants (the “Private Placement
Warrants,” and together with the Public Warrants, the “Warrants”) to the Legacy Sponsor at a price of $1.50 per Private
Placement Warrant, generating gross proceeds of $7,000,000 (such sale, the “Private Placement”) (see Note 4). Concurrently
with the closing of the Private Placement, the Institutional Anchor Investors paid the Legacy Sponsor $280,000 for the transfer of an
aggregate of 186,667 Private Placement Warrants, which transfer will take place upon the closing of the initial Business Combination.

The
Institutional Anchor Investors also purchased a portion of the equity interests of the Legacy Sponsor equivalent to 1,547,727 Founder
Shares (as defined in Note 5) from the Legacy Sponsor at the original purchase price of $0.004 per share. The Founder Shares may be converted
into Class A Ordinary Shares on a one-for-one basis at any time and from time to time prior to the closing of a Business Combination
at the election of the holders and will be automatically converted into Class A Ordinary Shares at the Business Combination on a one-for-one
basis, subject to adjustment as provided in its Amended and Restated Memorandum and Articles of Association (as amended and currently
in effect, the “Amended and Restated Charter”).

Transaction
costs amounted to $11,929,189, consisting of $4,000,000 of underwriting fees, $7,000,000 of deferred underwriting fees and $929,189 of
other offering costs. Of these transaction fees, the Company subsequently obtained a discount related to the underwriter fees of $199,999
and expensed $631,124 related to the allocation of offering costs and Founders Shares to Warrant expense. Other non-cash transaction
costs include the fair value in excess of consideration of $10,414,655 in relation to Founder Shares purchased by Institutional Anchor
Investors. Subsequent to the Initial Public Offering close, there was an additional $676,712 in related transaction offering costs