Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 166

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1A
Chunk 166
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-third of one Public Warrant. Of the proceeds we
received from the Initial Public Offering and the Private Placement, $200,000,000 was placed in our Trust Account. We will provide our
Public Shareholders the opportunity to redeem all or a portion of their Public Shares in connection with the completion of our initial
Business Combination, and potentially upon the occurrence of certain other events prior to our initial Business Combination. We expect
that the pro rata redemption price in any redemption, as of December 31, 2024, will be approximately $11.14 per Public Share (the “Redemption
Price”), representing a pro rata portion of our Trust Account without taking into account any interest or other income earned on
such funds (less any withdrawals from such interest or income for taxes paid), although the Redemption Price may be less in certain circumstances.
As a result, Public Shareholders who own our Public Shares on a redemption date can anticipate receiving the Redemption Price in connection
with a redemption for each Public Share that they choose to redeem.

There can be no assurance
that, after our initial Business Combination, such as the EEW Business Combination, our Public Shareholders would be able to sell
their shares in the post-Business Combination company for the Redemption Price, or any higher price. It is possible that the share
price of the post-Business Combination company may decline below the Redemption Price. In recent years, the share prices of many
post-Business Combination companies have fallen following a Business Combination. As a result, if our Public Shareholders continue
to hold shares in the post-Business Combination company following our initial Business Combination, we cannot assure our
shareholders that the trading price of such shares will be greater than the Redemption Price.

Certain
agreements related to the Initial Public Offering may be amended, or their provisions waived, without shareholder approval.

Certain
of the agreements related to the Initial Public Offering to which we are a party may be amended, or their provisions waived, without
shareholder approval. Such agreements include, among others, the (i) Underwriting Agreement, (ii) the Insider Letter, (iii) the Registration
Rights Agreement, (iii) the Private Placement Warrants Purchase Agreement and (iv) the Administrative Services Agreement. These agreements
contain various provisions that our Public Shareholders might deem to be material. For example, our Insider Letter and the Underwriting
Agreement contain certain lock-up provisions with respect to the Founder Shares and other securities held by our Sponsors, Prior