Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 95

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 95
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 (iii) may be exercised by the holders on a cashless basis and
(iv) are entitled to registration rights. The Private Placement Warrants may not, subject to certain limited exceptions, be transferred,
assigned or sold by the holder. If we do not complete our initial Business Combination by the end of the Combination Period, the Private
Placement Warrants will expire worthless. The Private Placement Warrants are subject to the transfer restrictions described below.

50

The
Institutional Anchor Investors are members in, but are not affiliates of, our Legacy Sponsor. The Institutional Anchor Investors indicated
an interest in purchasing Units sold in our Initial Public Offering and each held an indirect beneficial interest in certain Founder
Shares (and one of whom, had an indirect beneficial interest in certain Private Placement Warrants). None of those funds or accounts
is a managing member of our Legacy Sponsor, nor do they have any management authority with respect to our Legacy Sponsor. Unlike the
other participants in the Legacy Sponsor, the Institutional Anchor Investors are not subject to any lockup restriction on the transfer
of their Ordinary Shares and are not subject to forfeiture or adjustment with respect to their Founder Shares received in connection
with their purchase of Units in the Initial Public Offering, and while they generally agree or will use reasonable best efforts to vote
their Ordinary Shares in favor of the Business Combination, this voting commitment only applies to Ordinary Shares still held by them.
Further, with respect to Units purchased in the Initial Public Offering, the Institutional Anchor Investors have the same rights (including
redemption rights) as other public purchasers of Units.

Sponsor
Handover

On
August 30, 2023, our Sponsors entered into the Sponsor Purchase Agreement, and on August 31, 2023, our Sponsors consummated the Sponsor
Handover. Pursuant to the terms of the Sponsor Purchase Agreement, at the Sponsor Handover: (i) the Legacy Sponsor transferred 3,093,036
Founder Shares and 4,645,398 Private Placement Warrants to our Sponsor; (ii) our Sponsor agreed to cause us to pay an aggregated amount
of $300,000 in cash consideration upon closing of the Business Combination at the Legacy Sponsor’s direction to entities or accounts
as directed by the Legacy Sponsor (including the repayment of $125,000 under the 2021 Promissory Note); (iii) our Sponsor entered into
the Registration Rights Agreement Joinder; (iv) the Legacy Sponsor assigned the Administrative Services Agreement to our Sponsor; (