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

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 25
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 Redemption Limitation Amendment Proposal?

We believe our shareholders will benefit from the Third Extension and the EEW Business Combination and are proposing the Redemption Limitation Amendment Proposal to delete the Redemption Limitation. If the Redemption Limitation Amendment Proposal is not approved and there are significant requests for redemption in (i) the Third Extension Redemption or (ii) connection with the EEW Business Combination (or another Business Combination) such that our net tangible assets would be less than $5,000,001 following such redemptions, the Board would be unable to proceed with the Third Extension or we would be unable to complete the EEW Business Combination.

Why should I vote “FOR” the Auditor Ratification Proposal?

Withum has served as our independent registered public accounting firm since September 5, 2023. Effective as of September 5, 2023, the Board and the Audit Committee authorized dismissal of Marcum LLP ( “Marcum”) and the engagement of Withum as our new independent registered public accounting firm.Our Audit Committee and Board believe that stability and continuity in our auditor following this transition are important as we continue to search for and complete the Business Combination.

For more information on the change in our independent registered public accounting firm, see the section of this Proxy Statement entitled “ Proposal Three — The Auditor Ratification Proposal”.

Why should I vote “FOR” the Adjournment Proposal?

If the Adjournment Proposal is not approved by our shareholders, the Board may decide not to adjourn the Meeting to a later date or dates, or indefinitely, in the event that there are insufficient votes for, or otherwise in connection with, the approval of the other Proposals.

Does the Board recommend voting “FOR” the approval of the Proposals?

Yes. After careful consideration of the terms and conditions of these Proposals, our Board has determined that the Third Extension Amendment Proposal, the Redemption Limitation Amendment Proposal, the Auditor Ratification Proposal and, if presented, the Adjournment Proposal are in our Company’s best interest. The Board recommends that our shareholders vote “FOR” the Third Extension Amendment Proposal, “FOR” the Redemption Limitation Amendment Proposal, “FOR” the Auditor Ratification Proposal and “FOR” the Adjournment Proposal, if presented.

Are the Proposals conditioned on one another?

The Third Extension Amendment Proposal is not conditioned on the approval of either the Auditor Ratification Proposal or the Adjournment Proposal; however, we will not proceed with the Third Extension unless (i) the Redemption Limitation Amendment Proposal is approved or (ii) we