Company: CDAQF
Filing Date: 2025-03-13
Form Type: PRE 14A
Source: 0001493152-25-010116
Chunk: 4

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-13
Form: PRE 14A
Chunk 4
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 Combination Period”), and the Company is using its best efforts to complete the EEW Business Combination as soon as practicable, the Board believes that there will likely not be sufficient time before April 19, 2025 to complete the EEW Business Combination. Accordingly, the Board believes that in order to be able to consummate the EEW Business Combination, the Company will need to obtain the Third Extension. Without the Third Extension, the Board believes that there is significant risk that the Company might not, despite its best efforts, be able to complete the EEW Business Combination or another initial Business Combination on or before April 19, 2025. If that were to occur, the Company would be precluded from completing the EEW Business Combination or another initial Business Combination and would be forced to liquidate even if its shareholders are otherwise in favor of consummating such transaction.

Therefore, the Board has determined that it is in the best interests of the Company to extend the date by which the Company has to consummate the EEW Business Combination (or if the EEW Business Combination is not consummated, another initial Business Combination) to the Third Extended Date in order for its shareholders to have the opportunity to participate in the Company’s future investment. Additionally, without the Redemption Limitation Amendment, the Board may not be able to proceed with the Third Extension if, following the Third Extension Redemptions (as defined below), the Company would not have at least $5,000,001 in net tangible assets as currently required by its Amended and Restated Charter. If that were to occur, the Company, upon Board approval, would be forced to liquidate on April 19, 2025. The Company will not proceed with the Third Extension unless (i) the Redemption Limitation Amendment Proposal is approved or (ii) the Company will have at least $5,000,001 of net tangible assets following approval of the Third Extension Amendment Proposal, after taking into account the Third Extension Redemptions. The Company cannot predict the amount that will remain in the Trust Account (as defined below) following the Third Extension Redemptions, if the Charter Amendment Proposals are approved, and the amount remaining in the Trust Account may be significantly less than the approximately $ that was in the Trust Account as of .

If the Charter Amendment Proposals are approved, subject to satisfaction of the conditions to closing in the EEW Business Combination Agreement (including, without limitation, receipt of shareholder approval of the EEW Business Combination), the Company intends to complete the E