Company: CDAQF
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001641172-25-000430
Chunk: 70

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 70
---
 pursuant to Rule 3a51-1 under the Exchange Act in the event that such Ordinary Shares failed to be listed on an approved national securities exchange and thus, no longer qualified for the Exchange Rule exemption. However, since our securities are currently listed on the OTC, we can no longer rely on the Exchange Rule exemption. In connection with the EEW Business Combination, Pubco must meet the requirements to list Pubco’s securities on Nasdaq and upon consummation of the EEW Business Combination, we will become a wholly-owned subsidiary of Pubco.

Although we may be deemed a penny stock issuer without the exemptions under the NTA Rule and Exchange Rule, if the Redemption Limitation Amendment Proposal is not approved and there are significant requests for redemption in the Third Extension Redemptions such that following the Third Extension Redemptions, our net tangible assets would be less than $5,000,001, the Redemption Limitation would prevent us from being able to use the Third Extension and we would need to proceed with liquidation of the Trust Account and dissolution of our Company pursuant to the Amended and Restated Charter by April 19, 2025. Additionally, if the Redemption Limitation Amendment Proposal is not approved and there are significant requests for redemption in connection with the consummation of the EEW Business Combination, the Redemption Limitation could prevent us from being able to consummate the EEW Business Combination, even if all other conditions to the Closing are met. Consequently, our Board has determined that it is in the best interests of our Company to eliminate the Redemption Limitation from our Amended and Restated Charter in order for our shareholders to have the opportunity to participate in our future investment.

| 34 |

The IPO Prospectus and Amended and Restated Charter provide that a special resolution of our shareholders is required to alter or add to the Amended and Restated Charter. Additionally, our IPO Prospectus and Amended and Restated Charter provide for all Public Shareholders to have an opportunity to redeem their Public Shares if any amendment is made to our Amended and Restated Charter with respect to any provision relating to a Public Shareholders’ rights or pre-Business Combination activity.

We are not asking you to vote on the Business Combination at this time. If the Charter Amendment Proposals are approved, and you do not elect to redeem your Public Shares in the Third Extension Redemptions, you will retain the right to vote on the Business Combination in the future and the right to redeem your Public Shares at a per-share price,