Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 98

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 98
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 up to the directors of the post-combination business
to determine executive officer and director compensation.

Working
Capital Loans and Promissory Notes

In
order to finance transaction costs in connection with an intended initial Business Combination, our Initial
Shareholders, 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, loan us Working Capital Loans as may be required on a non-interest basis.
If we complete an initial Business Combination, we would repay such Working Capital Loans. In the event that the initial Business Combination
does not close, we may use a portion of the working capital held outside the Trust Account to repay such Working Capital Loans but no
proceeds from our Trust Account would be used for such repayment. Up to $1,500,000 of such Working Capital Loans may be convertible into
warrants of the post Business Combination entity at a price of $1.50 per whole warrant at the option of the lender at the time of the
Business Combination. Such warrants would be identical to the Private Placement Warrants. Prior to the completion of our initial Business
Combination, we do not expect to seek loans from parties other than our Sponsors or an affiliate of our Sponsors as we do not believe
third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in our Trust
Account.

52

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 our existing Private Placement Warrants held by GCG. The foregoing description of the 2021 Promissory Note is not complete
and is qualified in its