Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 907

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 5
Chunk 907
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 or an affiliate of our Sponsors as we do not believe
third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in our Trust
Account.

52

On
December 30, 2021, there was a written agreement put in place for the 2021 Working Capital Loan when we issued the 2021 Promissory Note,
an unsecured promissory note in the principal amount of up to $1,000,000 to GCG, an affiliate of our Legacy Sponsor. The 2021 Promissory
Note bears no interest and is repayable in full upon consummation of the initial Business Combination. GCG has the option to convert
any unpaid balance of the 2021 Promissory Note into 2021 Note Warrants to purchase one share of Class A Ordinary Shares equal to the
principal amount of the 2021 Promissory Note so converted divided by $1.50. The terms of any such 2021 Note Warrants will be identical
to the terms of our existing Private Placement Warrants held by GCG. The foregoing description of the 2021 Promissory Note is not complete
and is qualified in its entirety by reference to the 2021 Promissory Note, which is attached as an exhibit to this Report. As of December
31, 2024 and 2023, we had borrowed an aggregate of $125,000 under the 2021 Promissory Note, respectively.

On
November 21, 2024, there was a written agreement put in place for the 2024 Working Capital Loan when we issued the 2024 Promissory Note
in the aggregate principal amount of up to $2,500,000 to the Sponsor. The 2024 Promissory Note was issued in connection with advances
the Sponsor has previously made and may make in the future to us for working capital expenses. The 2024 Promissory Note bears no interest
and is repayable in full upon the earlier of (i) the date on which we consummate an initial Business Combination and (ii) the date of
our liquidation. If, prior to the Business Combination, the principal balance of the 2024 Promissory Note has not been paid in full,
then, at the Sponsor’s option and subject to certain conditions, up to $1,375,000 of the unpaid principal amount of the 2024 Promissory
Note may