Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 160

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 160
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 Polar may elect to receive such repayment (i) in cash or (ii) in Class A Ordinary
Shares at a rate of one Class A Ordinary Share for each ten dollars of the Polar Capital Investment. In the event we liquidate without
consummating a Business Combination, any amounts remaining in our cash accounts (excluding the Trust Account) will be paid by us to Polar
within five (5) calendar days of the liquidation, and such amounts will be the sole recourse for Polar.

Letter
Agreement

Our
Sponsors, former and current directors and officers have entered into by the Letter Agreement with us, pursuant to which, they have waived
their rights to liquidating distributions from the Trust Account with respect to any Founder Shares held by them if we fail to complete
our initial Business Combination within the Combination Period. However, if they acquire Public Shares in or after the Initial Public
Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares if we fail to
complete our initial Business Combination within the Combination Period.

Additionally,
pursuant to the Letter Agreement, our Sponsors, former and current directors and officers will not propose any amendment to our Amended
and Restated Charter (i) to modify the substance or timing of our obligation to allow redemption in connection with our initial Business
Combination or to redeem 100% of our Public Shares if we do not complete our initial Business Combination within the Combination Period
or (ii) with respect to any other material provisions relating to shareholders’ rights or pre-initial Business Combination activity,
unless we provide our Public Shareholders with the opportunity to redeem their Public Shares upon approval 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.

Non-Redemption
Agreements

Between
October 9, 2023 and October 19, 2023, we entered into the 2023 Non-Redemption Agreements with the Sponsor and unaffiliated third-party
investors in exchange for such investors agreeing not to redeem an aggregate of 4,998,734 Public Shares in connection with the vote to
approve the Charter Amendment Proposals at the 2023 EGM. In exchange for these commitments not to redeem such Public Shares, the Sponsor
agreed