Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 22

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 22
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 than in a public
    offering); 

    ●
    Any
    of our directors, officers or substantial shareholders (as defined by the Nasdaq Rules) has a 5% or greater interest earned on the
    Trust Account (or such persons collectively have a 10% or greater interest), directly or indirectly, in the target business or
    assets to be acquired or otherwise and the present or potential issuance of Ordinary Shares could result in an increase in
    outstanding Ordinary Shares or voting power of 5% or more; or 

    ●
    The issuance or potential
    issuance of Ordinary Shares will result in our undergoing a change of control. 

See
“EEW Business Combination” above for more information on the requisite approvals in connection with the EEW Business Combination.

Permitted
Purchases of Our Securities

If
we seek shareholder approval of our initial Business Combination and we do not conduct redemptions in connection with our initial
Business Combination pursuant to the tender offer rules, our Sponsors, Initial Shareholders, Prior Directors and Officers, members
of our Management Team, advisors or their affiliates may purchase Public Shares or Public Warrants in privately negotiated
transactions or in the open market either prior to or following the completion of our initial Business Combination. There is no
limit on the number of Public Shares they may purchase in such transactions, subject to compliance with applicable law and the
Nasdaq Rules. However, they have no current commitments, plans or intentions to engage in such transactions and have not formulated
any terms or conditions for any such transactions. None of the funds in the Trust Account will be used to purchase Public Shares or
Public Warrants in such transactions. If they engage in such transactions, they will not make any such purchases when they are in
possession of any material non-public information not disclosed to the seller or if such purchases are prohibited by Regulation M
under the Exchange Act.

12

Redemption
Rights for Public Shareholders upon Completion of Our Initial Business Combination

We
will provide our Public Shareholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of our
initial Business Combination at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account
calculated as of two business days prior to the closing of our initial Business Combination, including interest earned on the funds held
in the Trust Account and not previously released to us to pay our taxes, divided by the number of then outstanding Public Shares