Company: CDAQF
Filing Date: 2025-03-13
Form Type: PRE 14A
Source: 0001493152-25-010116
Chunk: 25

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-13
Form: PRE 14A
Chunk 25
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 If that were to occur, we would be forced to liquidate and dissolve following the Second Extended Date.

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Our Amended and Restated Charter provide that if any amendment is made to our Amended and Restated Charter to modify (i) the substance or timing of our obligation to redeem 100 percent of the Public Shares if we not consummate a Business Combination within the Combination Period or (ii) any other provisions relating to the shareholders’ rights or pre-Business Combination activity, we will provide our Public Shareholders, other than the Sponsor, our officers or directors, and the holders of the Founder Shares prior to the Initial Public Offering with the opportunity to redeem their Public Shares upon the approval or effectiveness 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. We believe that this provision was included to protect our shareholders from having to sustain their investments for an unreasonably long period if we failed to find a suitable Business Combination in the timeframe contemplated by the Amended and Restated Charter.

Why should I vote “FOR” the Redemption Limitation Amendment Proposal?

We believe our shareholders will benefit from the Third Extension and the EEW Business Combination and are proposing the Redemption Limitation Amendment Proposal to delete the Redemption Limitation. If the Redemption Limitation Amendment Proposal is not approved and there are significant requests for redemption in (i) the Third Extension Redemption or (ii) connection with the EEW Business Combination (or another Business Combination) such that our net tangible assets would be less than $5,000,001 following such redemptions, the Board would be unable to proceed with the Third Extension or we would be unable to complete the EEW Business Combination.

Why should I vote “FOR” the Auditor Ratification Proposal?

Withum has served as our independent registered public accounting firm since September 5, 2023. Effective as of September 5, 2023, the Board and the Audit Committee authorized dismissal of Marcum LLP ( “Marcum”) and the engagement of Withum as our new independent registered public accounting firm.Our Audit Committee and Board believe that stability and continuity in our auditor following this transition are important as we continue to search for and complete the Business Combination.

For more information on the change in our independent registered public accounting firm, see the section of this Proxy Statement entitled “ Proposal