Company: CDAQF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023544
Chunk: 65

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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 deferred underwriting fees payable held in the Trust
Account with respect to any Business Combination.

Investor
Subscription Agreement

On
September 6, 2023, we entered into the Polar Subscription Agreement with the Sponsor and Polar, pursuant to which Polar agreed to fund
up to $1,500,000 to us, subject to certain funding milestones. Once we have reached a defined milestone, upon on at least five (5) calendar
days’ prior written notice, the Sponsor may require a drawdown against Polar’s capital commitment, a Polar Capital Investment,
in order to meet the Sponsor’s commitment to us under a drawdown request. As of June 30, 2025 and December 31, 2024, we had drawn
$1,250,000, on the Polar Capital Investment that was fair valued at $227,273. The Polar Capital Investment will be repaid to Polar by
us upon the closing of an initial Business Combination. Polar may elect to receive such repayment (i) in cash or (ii) in Class A Ordinary
Shares at a rate of one Class A Ordinary Share for each ten dollars of the Polar Capital Investment. In the event we liquidate without
consummating a Business Combination, any amounts remaining in our cash accounts (excluding the Trust Account) will be paid by us to Polar
within five (5) calendar days of the liquidation, and such amounts will be the sole recourse for Polar.

Letter
Agreement

Our
Sponsors, former and current directors and officers have entered into by the Letter Agreement with us, pursuant to which, they have waived
their rights to liquidating distributions from the Trust Account with respect to any Founder Shares held by them if we fail to complete
our initial Business Combination within the Combination Period. However, if they acquire Public Shares in or after the Initial Public
Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares if we fail to
complete our initial Business Combination within the Combination Period.

Additionally,
pursuant to the Letter Agreement, our Sponsors, former and current directors and officers will not propose any amendment to our Amended
and Restated Charter (i) to modify the substance or timing of our obligation to allow redemption in connection with our initial Business
Combination or to redeem 100% of our Public Shares if we do not complete our initial Business Combination within the Combination Period
or (ii) with respect to any other material provisions relating to shareholders’ rights