Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 9

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 Business Combination.

The Company will provide its holders of the outstanding
Public Shares (the “Public Shareholders”) with the opportunity to redeem all or a portion of their Public Shares upon the
completion of a Business Combination either (i) in connection with a shareholder meeting called to approve the Business Combination or
(ii) by means of a tender offer. In connection with a proposed Business Combination, the Company may seek shareholder approval of a Business
Combination at a meeting called for such purpose at which shareholders may seek to redeem their shares without voting, and if they do
vote, irrespective of whether they vote for or against a Business Combination.

If the Company seeks shareholder
approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Amended and Restated Charter
provides that a Public Shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is
acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), will be restricted from seeking redemption rights with respect to more than an aggregate of 15% of the Public Shares without
the Company’s prior written consent.

The Public Shareholders will be entitled to redeem
their Public Shares for a pro rata portion of the amount then in the Trust Account ($11.24 per Public Share as of March 31, 2025, plus
any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations).
There will be no redemption rights upon the completion of a Business Combination with respect to the Warrants. These Class A Ordinary
Shares were recorded at a redemption value and classified as temporary equity upon the completion of the Initial Public Offering, in accordance
with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing
Liabilities from Equity” (“ASC 480”).

If a shareholder vote is not required and the Company
does not decide to hold a shareholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated
Charter, offer such redemption pursuant to the tender offer rules of the SEC, and file tender offer documents containing substantially
the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination.

The Sponsors have agreed
(i) to vote their Founder Shares and any