Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 21

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 21
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Limited
Ability to Evaluate the Target’s Management Team

Although
we closely scrutinize the management of a prospective target business when evaluating the desirability of effecting our initial
Business Combination with that business, including the management team of EEW, our assessment of the target business’s
management may not prove to be correct. In addition, the future management may not have the necessary skills, qualifications or
abilities to manage a public company. Furthermore, the future role of members of our Management Team, if any, in the target business
cannot presently be stated with any certainty. The determination as to whether any of the members of our Management Team will remain
with the combined company will be made in connection with our initial Business Combination. While it is possible that one or more of
our directors will remain associated in some capacity with us following our initial Business Combination, including
the EEW Business Combination, it is unlikely that any of them will devote their full efforts to our affairs subsequent to our
initial Business Combination. Moreover, we cannot assure you that members of our Management Team will have significant experience or
knowledge relating to the operations of the particular target business.

We
cannot assure you that any of our key personnel will remain in senior management or advisory positions with the combined company. The
determination as to whether any of our key personnel will remain with the combined company will be made in connection with our initial Business
Combination.

Following
a Business Combination, we may seek to recruit additional managers to supplement the incumbent management of the target business. We
cannot assure you that we will have the ability to recruit additional managers, or that additional managers will have the requisite skills,
knowledge or experience necessary to enhance the incumbent management.

Shareholders
May Not Have the Ability to Approve Our Initial Business Combination

We
may conduct redemptions without a shareholder vote pursuant to the tender offer rules of the SEC subject to the provisions of our Amended
and Restated Charter. However, we will seek shareholder approval if it is required by law or applicable stock exchange rules (as
is the case with the EEW Business Combination as currently contemplated), or we may decide to seek shareholder approval for business
or other reasons.

So
long as our securities are listed on Nasdaq, shareholder approval would be required for our initial Business Combination if, for example:

    ●
    We issue Class A Ordinary
    Shares that will be equal to or in excess of 20% of the number of our Class A Ordinary Shares then outstanding (other