Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 679

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 3
Chunk 679
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 Account would be used for such repayment. Up to $1,500,000 of such Working Capital Loans may be convertible into
warrants of the post Business Combination entity at a price of $1.50 per whole warrant at the option of the lender at the time of the
Business Combination. Such warrants would be identical to the Private Placement Warrants. Prior to the completion of our initial Business
Combination, we do not expect to seek loans from parties other than our Sponsors or an affiliate of our Sponsors as we do not believe
third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in our Trust
Account.

52

On
December 30, 2021, there was a written agreement put in place for the 2021 Working Capital Loan when we issued the 2021 Promissory Note,
an unsecured promissory note in the principal amount of up to $1,000,000 to GCG, an affiliate of our Legacy Sponsor. The 2021 Promissory
Note bears no interest and is repayable in full upon consummation of the initial Business Combination. GCG has the option to convert
any unpaid balance of the 2021 Promissory Note into 2021 Note Warrants to purchase one share of Class A Ordinary Shares equal to the
principal amount of the 2021 Promissory Note so converted divided by $1.50. The terms of any such 2021 Note Warrants will be identical
to the terms of our existing Private Placement Warrants held by GCG. The foregoing description of the 2021 Promissory Note is not complete
and is qualified in its entirety by reference to the 2021 Promissory Note, which is attached as an exhibit to this Report. As of December
31, 2024 and 2023, we had borrowed an aggregate of $125,000 under the 2021 Promissory Note, respectively.

On
November 21, 2024, there was a written agreement put in place for the 2024 Working Capital Loan when we issued the 2024 Promissory Note
in the aggregate principal amount of up to $2,500,000 to the Sponsor. The 2024 Promissory Note was issued in connection with advances
the Sponsor has previously made and may make in the future to us for working capital expenses. The 2024 Promissory Note bears no interest
and is