Company: CDAQF
Filing Date: 2025-03-13
Form Type: PRE 14A
Source: 0001493152-25-010116
Chunk: 30

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-13
Form: PRE 14A
Chunk 30
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 our shareholders, to decide to liquidate our Company at any time prior to April 20, 2026.

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If the Third Extension Amendment Proposal is approved, and one or more of our shareholders elect to redeem their Public Shares pursuant to the Third Extension Redemptions, we will remove from the Trust Account and deliver to the holders of such redeemed Public Shares the Withdrawal Amount, and retain the remainder of the funds in the Trust Account for our use in connection with consummating the EEW Business Combination on or before the Third Extended Date. Any such redeemed Public Shares will increase the percentage interest of our Ordinary Shares held by the Sponsors and our directors and officers as a result of their ownership of our Founder Shares, including Class B Ordinary Shares.

If the Third Extension Amendment Proposal is approved, the removal from the Trust Account of the Withdrawal Amount will reduce our net asset value. We cannot predict the amount that will remain in the Trust Account following the Third Extension Redemptions if the Third Extension Amendment Proposal is approved; the amount remaining in the Trust Account may be only a small fraction of the approximately $ that was in the Trust Account as of .

In addition, the Amended and Restated Charter provides that we cannot redeem or repurchase Public Shares to the extent such redemption would result in our failure to have at least $5,000,001 of net tangible assets. As a result, our Board will not proceed with the Third Extension unless the Redemption Limitation Amendment Proposal is approved or if we will have at least $5,000,001 of net tangible assets following approval of the Third Extension Amendment Proposal, after taking into account the Third Extension Redemptions.

What happens if the Third Extension Amendment Proposal is not approved?

If there are insufficient votes to approve the Third Extension Amendment Proposal, we may put the Adjournment Proposal to a vote in order to seek additional time to obtain sufficient votes in support of the Third Extension Amendment Proposal. For the avoidance of doubt, if put forth at the Meeting, the Adjournment Proposal will be the first and only proposal voted on and the Third Extension Amendment Proposal, the Redemption Ratification Proposal and the Auditor Ratification Proposal will not be submitted to the shareholders for a vote at such time.

If the Third Extension Amendment Proposal is not approved, and the Business Combination is not completed within the Combination Period, then as contemplated by and in accordance with the Amended and Restated Charter, we will (i) cease all operations except for the purpose of winding up; (ii) as promptly