Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 166

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 3
Chunk 166
---
 a significant negative impact on foreign businesses that rely on
imports from the United States, and domestic businesses that rely on exporting goods internationally. These tariffs and threats of tariffs and
other potential trade policy changes could negatively affect the attractiveness of certain initial Business Combination targets, or lead
to material adverse effects on a post-Business Combination company. Among other things, historical financial performance of companies
affected by trade policies and/or tariffs may not provide useful guidance as to the future performance of such companies, because future
financial performance of those companies may be materially affected by new U.S. tariffs or foreign retaliatory tariffs, or other changes
to trade policies. The business prospects of a particular target for a Business Combination could change as a result of tariffs or the threat of tariffs that may have a material impact on that target’s business,
and it may be costly or impractical for us to terminate that Business Combination agreement. 

We
may not be able to adequately address the risks presented by these tariffs or other potential trade policy changes. As a result, we may
deem it costly, impractical or risky to complete an initial Business Combination with a particular target or with a target in a particular
industry or from a particular country. This could impair our ability
to complete an initial Business Combination with EEW or any other target. If we complete an initial Business Combination with such
a target, the post-Business Combination company’s operations and financial results could be adversely affected as a result
of tariffs or changes to trade policies, which may cause the market value of the securities of the post-Business Combination company
to decline.

29

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.

Unregistered
Sales of Equity Securities

None.

Use
of Proceeds

For
a description of the use of proceeds generated in our Initial Public Offering and Private Placement, see Part II, Item 2 of our Quarterly
Report on Form 10-Q for the quarterly period ended September 30, 2021, as filed with the SEC on November 23, 2021. There has been no
material change in the planned use of proceeds from our Initial Public Offering and Private Placement as described in the IPO Registration
Statement. The specific investments in our Trust Account may change from time to time.

On
October 19, 2023, we instructed Continental to liquidate the investments held in the Trust Account and instead to hold the funds in the
Trust Account in an interest-bearing demand deposit account at Cit