Company: CDAQF
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001641172-25-000430
Chunk: 43

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 43
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 the aforementioned filings and below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, may also become important factors that adversely affect our business, financial condition and operating results or result in our liquidation. We may disclose changes to such risk factors or disclose additional risk factors from time to time in our future filings with the SEC.

For risks related to EEW and the EEW Business Combination, please see the Registration Statement on Form F-4, which will include a proxy statement/prospectus prepared by us, to be filed by Pubco with the SEC in connection with the EEW Business Combination (the “ EEW Registration Statement”), once filed.

There are no assurances that the Third Extension will enable us to complete a Business Combination.

Approving the Third Extension involves a number of risks. Even if the Third Extension Amendment Proposal is approved, we can provide no assurances that the Business Combination will be consummated prior to the Third Extended Date. Our ability to consummate any Business Combination is dependent on a variety of factors, many of which are beyond our control. If the Third Extension Amendment Proposal is approved, we expect to seek shareholder approval of the Business Combination. We are required to offer shareholders the opportunity to redeem their Public Shares in connection with the Charter Amendments, and we will be required to offer shareholders redemption rights again in connection with any shareholder vote to approve the Business Combination. Even if the Charter Amendment Proposals or the Business Combination are approved by our shareholders, it is possible that redemptions will leave us with insufficient cash to consummate a Business Combination on commercially acceptable terms, or at all. The fact that we will have separate redemption periods in connection with the Charter Amendments and the Business Combination vote could exacerbate these risks. Other than in connection with a redemption offer or liquidation, our shareholders may be unable to recover their investment except through sales of our shares on the open market. The price of our shares may be volatile, and there can be no assurance that shareholders will be able to dispose of our shares at favorable prices, or at all.

Our Sponsors, officers and directors own a substantial number of our Ordinary Shares and can approve all of the Proposals without the vote of other shareholders.

Following the Sponsor Handover, the Founder Share Conversions and the Prior Extension Redemptions, our Sponsors, officers and directors collectively own 3,200,000 Class A Ordinary Shares and 2,110,122 Class B Ordinary Shares, which represents approximately 68