Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 81

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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 determined by the Board of Directors (the “2025 Extension
Amendment Proposal”).

In connection with the vote to approve the 2025 Extension
Amendment Proposal, Public Shareholders holding 2,370,619 Public Shares (after giving effect to withdrawals of redemptions) exercised
their right to redeem such shares for a pro rata portion of the funds in the Trust Account (the “2025 Redemptions”). As a
result of the 2025 Redemptions, approximately $26.7 million (approximately $11.25 per share) was removed from the Trust Account to pay
such holders.

    7

COMPASS DIGITAL ACQUISITION CORP.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2025

Founder Share Conversions

On October 19, 2023, following the approval of the
Founder Share Amendment Proposal at the 2023 EGM, the Sponsors also converted an aggregate of 600,000 Founder Shares on a one-for-one
basis into Class A Ordinary Shares (the “2023 Founder Share Conversion”) and waived any right to receive funds from the Trust
Account with respect to the Class A Ordinary Shares received upon such conversion and acknowledged that such shares will be subject to
all of the restrictions applicable to the original Founder Shares under the terms of the Letter Agreement.

On July 24, 2024, in connection
with the 2024 EGM and the 2024 Redemptions, the Sponsors also converted an aggregate of 2,600,000 Founder Shares on a one-for-one basis
into Class A Ordinary Shares (the “2024 Founder Share Conversion”) and waived any right to receive funds from the Trust Account
with respect to the Class A Ordinary Shares received upon such conversion and acknowledged that such shares will be subject to all of
the restrictions applicable to the original Founder Shares under the terms of the Letter Agreement.

Business Combination Agreement

On September 5, 2024, the
Company entered into a Business Combination Agreement (as amended, restated or otherwise modified from time to time, the “Business
Combination Agreement”) with (i) the Sponsor, in the capacity as the representative from and after the closing of the transactions
contemplated by the Business Combination Agreement (the “Closing”) for the shareholders of the Company, (ii) upon execution
of a joinder thereto, a to-be-formed Cayman Islands exempted