Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 18

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 18
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 effectuate our initial Business Combination using the proceeds of such offering rather than using the
amounts held in the Trust Account. In addition, we target businesses with enterprise values that are greater than we could acquire with
the net proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, and, as a result, if the cash portion
of the purchase price exceeds the amount available from the Trust Account, net of amounts needed to satisfy any redemptions by Public
Shareholders, we may be required to seek additional financing to complete such proposed initial Business Combination. Subject to compliance
with applicable securities laws, we expect to complete such financing only concurrently with the completion of our initial Business Combination.
In the case of an initial Business Combination funded with assets other than the Trust Account assets, our proxy materials or tender
offer documents disclosing the initial Business Combination would disclose the terms of the financing and, only if required by law, we
would seek shareholder approval of such financing. There is no limitation on our ability to raise funds through the issuance of equity
or equity-linked securities or through loans, advances or other indebtedness in connection with our initial Business Combination, including
pursuant to any forward purchase agreements or backstop agreements we may enter into following closing of the Initial Public Offering.
None of our Sponsors, Prior Directors and Officers, members of our Management Team or shareholders is required to provide any financing
to us in connection with or after our initial Business Combination.

Sources
of Target Businesses

Target
business candidates are brought to our attention from various unaffiliated sources, including investment bankers and private investment
funds. Target businesses may be brought to our attention by such unaffiliated sources as a result of being solicited by us through calls
or mailings. These sources may also introduce us to target businesses in which they think we may be interested on an unsolicited basis,
since many of these sources will have read the IPO Registration Statement or this Report and know what types of businesses we are targeting.
Our officers and directors, as well as their affiliates, may also bring to our attention target business candidates of which they become
aware through their business contacts as a result of formal or informal inquiries or discussions they may have, as well as attending
trade shows or conventions. In addition, we expect to receive a number of proprietary deal flow opportunities that would not otherwise
necessarily be available to us as a result of the track record and business relationships of our officers and directors.

10

While
we have not engaged