Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 57

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 57
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2021 or the completion
of our Initial Public Offering. The loans of $195,000 were fully repaid upon the consummation of our Initial Public Offering on October
19, 2021. No additional borrowing is available under the IPO Promissory Note.

Working
Capital Loans

In
order to finance transaction costs in connection with a Business Combination, holders of our Founder Shares prior to our Initial Public
Offering (the “Initial Shareholders”), the Sponsors or an affiliate of the Initial Shareholders or Sponsors, or certain of
our Prior Directors and Officers or current directors and officers may, but are not obligated to, provide us Working Capital Loans. Such
Working Capital Loans would be evidenced by promissory notes. The notes would either be repaid upon consummation of a Business Combination,
without interest, or, at the lender’s discretion, up to $1,500,000 of notes may be converted upon consummation of a Business Combination
into warrants at a price of $1.50 per warrant. Such warrants would be identical to the Private Placement Warrants. In the event that
a Business Combination does not close, we may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans,
but no proceeds held in the Trust Account would be used to repay the Working Capital Loans.

2021
Promissory Note

On
December 30, 2021, there was a written agreement put in place for the 2021 Working Capital Loan when we issued the 2021 Promissory Note,
an unsecured promissory note in the principal amount of up to $1,000,000 to GCG, an affiliate of our Legacy Sponsor. The 2021 Promissory
Note bears no interest and is repayable in full upon consummation of the initial Business Combination. GCG has the option to convert
any unpaid balance of the 2021 Promissory Note into 2021 Note Warrants to purchase one share of Class A Ordinary Shares equal to the
principal amount of the 2021 Promissory Note so converted divided by $1.50. The terms of any such 2021 Note Warrants will be identical
to the terms of the Private Placement Warrants. As of March 31, 2025 and December 31, 2024, we had borrowed an aggregate of $125,000
under the 2021 Promissory Note.

2024
Promissory Note

On