Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 524

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 2
Chunk 524
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 issued and outstanding Ordinary Shares.

EEW
Business Combination

On
September 5, 2024, we entered into the EEW Business Combination Agreement with the Purchaser Representative, EEW, the Sellers, the Seller
Representative and, upon execution of joinders thereto, Pubco and Merger Sub.

Pursuant
to the EEW Business Combination Agreement, subject to the terms and conditions set forth therein, at the Closing, (a) Merger Sub will
merge with and into our Company, with our Company continuing as the surviving entity, and as a result of the Merger, (i) we shall become
a wholly-owned subsidiary of Pubco, and (ii) each issued and outstanding security of our Company immediately prior to the Effective Time
(as defined in the EEW Business Combination) shall no longer be outstanding and shall automatically be cancelled, in exchange for the
right of the holder thereof to receive a substantially equivalent security of Pubco, (b) Pubco shall acquire all of EEW Ordinary Shares
from the Sellers in exchange for newly issued ordinary shares of Pubco, par value $0.0001 per share, all upon the terms and subject to
the conditions set forth in the EEW Business Combination Agreement and in accordance with the applicable provisions of the Companies
Act and the laws of England and Wales, and any outstanding convertible securities of EEW will be terminated; and (c) as a result of the
EEW Business Combination, our Company and EEW each will become a wholly-owned subsidiary of Pubco, and Pubco will become a publicly traded
company upon the Closing.

31

For
a full description of the EEW Business Combination Agreement and the proposed EEW Business Combination, please see Item 1. “Business”.

Results
of Operations

Our
entire activity from inception up to December 31, 2024, relates to our formation, Initial Public Offering, the search for a target business
and the consummation of an initial Business Combination, such as the EEW Business Combination. We will not be generating any operating
revenues until the closing and completion of our initial Business Combination, at the earliest. We generate non-operating income in the
form of interest income on cash and cash equivalents or investments from the proceeds derived from the Initial Public Offering and the
Private Placement, which are partially offset by operating expenses and related party administrative expenses. We incur increased expenses
as a result of being a public company (for legal, financial reporting