Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 136

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 136
---
 (3.50%) of the gross proceeds of the Initial Public Offering,
or $7,000,000 (or $8,050,000 if the Over-Allotment Option was exercised in full). The deferred fees were to become payable to the underwriters
from the amounts held in the Trust Account solely in the event that we complete a Business Combination, subject to the terms of the Underwriting
Agreement.

25

On
August 11, 2023 and August 14, 2023, we received formal confirmations from Citigroup Global Markets Inc. and J.P. Morgan Securities LLC,
informing us of their decisions to waive any entitlement they may have to their deferred underwriting fees payable held in the Trust
Account with respect to any Business Combination.

Investor
Subscription Agreement

On
September 6, 2023, we entered into the Polar Subscription Agreement with the Sponsor and Polar, pursuant to which Polar agreed to fund
up to $1,500,000 to us, subject to certain funding milestones. Once we have reached a defined milestone, upon on at least five (5) calendar
days’ prior written notice, the Sponsor may require a drawdown against Polar’s capital commitment, a Polar Capital Investment,
in order to meet the Sponsor’s commitment to us under a drawdown request. As of September 30, 2025 and December 31, 2024, we had
drawn $1,250,000, on the Polar Capital Investment that was fair valued at $227,273. The Polar Capital Investment will be repaid to Polar
by us upon the closing of an initial Business Combination. 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