Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 125

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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Allotment Option (of which
$434,171 was for deferred underwriting fees). On August 11, 2023 and August 14, 2023, the underwriters of the Initial Public Offering
informed us of their decision to waive their rights to the deferred underwriting commission held in the Trust Account.

Our
Management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale
of the Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward consummating
a Business Combination. We will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or
more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it
not to be required to register as an investment company under the Investment Company Act. There is no assurance that we will be able
to successfully effect a Business Combination.

21

We
will provide the Public Shareholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of a
Business Combination either (i) in connection with a shareholder meeting called to approve the Business Combination or (ii) by means
of a tender offer. In connection with a proposed Business Combination, we may seek shareholder approval of a Business Combination at
a meeting called for such purpose at which Public Shareholders may seek to redeem their Public Shares without voting, and if they do
vote, irrespective of whether they vote for or against a Business Combination.

If
we seek shareholder approval of a Business Combination and do not conduct redemptions pursuant to the tender offer rules, our Amended
and Restated Charter provides that, a Public Shareholder, together with any affiliate of such Public Shareholder or any other person
with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Exchange Act), will be
restricted from seeking redemption rights with respect to more than an aggregate of 15% of the Public Shares without our prior written
consent.

In
connection with such vote, the Public Shareholders will be entitled to redeem their Public Shares for a pro rata portion of the amount
then in the Trust Account ($11.14 per share as of December 31, 2024, net of taxes paid and payable). There will be no redemption rights
upon the completion of a Business Combination with respect to Warrants. These Class A Ordinary Shares have