Company: CDAQF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023544
Chunk: 17

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 any transferees of ordinary shares of EEW prior to the Closing that either sign a joinder
agreement to become a party thereto, or that become bound thereby pursuant to the drag-along rights to be set forth in EEW’s amended
organizational documents (collectively, the “Sellers”), and (vi) E.E.W. Global Holding Limited, in the capacity as the representative
for the Sellers in accordance with the terms and conditions of the Business Combination Agreement.

Pursuant
to the Business Combination Agreement, subject to the terms and conditions set forth therein, at the Closing, (a) Merger Sub will merge
with and into the Company, with the Company continuing as the surviving entity (the “Merger”), as a result of which, (i)
the Company shall become a wholly-owned subsidiary of Pubco, and (ii) each issued and outstanding security of the Company immediately
prior to the Effective Time (as defined in the Business Combination Agreement) shall no longer be outstanding and shall automatically
be cancelled, in exchange for the right of the holder thereof to receive a substantially equivalent security of Pubco, and (b) Pubco
shall acquire all of the issued and outstanding ordinary shares of EEW from the Sellers in exchange for Pubco ordinary shares (the “Share
Exchange”), all upon the terms and subject to the conditions set forth in the Business Combination Agreement and in accordance
with the applicable provisions of the Companies Act (Revised) of the Cayman Islands and the laws of England and Wales (the Merger, the
Share Exchange and the other transactions contemplated by the Business Combination Agreement and the ancillary documents, together, the
“Transactions”), and any outstanding convertible securities of EEW will be terminated; and (c) as a result of such Transactions,
the Company and EEW each will become a wholly-owned subsidiary of Pubco, and Pubco will become a publicly traded company upon the Closing.

Share
Exchange and Consideration

The
base consideration to be paid to the Sellers is $300,000,000 (subject to increase to the extent that the Company’s unpaid transaction
expenses and cash liabilities as of the Closing that the Sponsor does not pay in cash exceeds $5,000,000, and subject to decrease to
the extent that the amount of EEW’s unpaid transaction expenses is more than $5,000,000), and will be paid entirely in the form
of newly issued ordinary shares of Pubco, par value $0.0001