Company: CDAQF
Filing Date: 2025-03-13
Form Type: PRE 14A
Source: 0001493152-25-010116
Chunk: 52

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-13
Form: PRE 14A
Chunk 52
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, interest previously earned on the funds held in the Trust Account still may be released to us to pay our taxes, if any, and certain other expenses as permitted. Consequently, the transfer of the funds in the Trust Account to an interest-bearing demand deposit account at a bank could reduce the dollar amount our Public Shareholders would receive upon any redemption or our liquidation.

In order to finance transaction costs in connection with an intended initial Business Combination, GCG, an affiliate of the Prior Sponsor committed, in the form of the 2023 Promissory Note, up to $1,000,000 to us to fund our expenses relating to investigating and selecting a target business, consummating a Business Combination, and other working capital requirements prior to our initial Business Combination. As of , we had borrowed $125,000 and had $0 available to us under the 2023 Promissory Note.

Additionally, on September 6, 2023, we entered into a Subscription Agreement with the Sponsor and Polar Multi-Strategy Master Fund (“ Polar” and such agreement, the “ Polar Subscription Agreement”), pursuant to which Polar agreed to fund up to $1,500,000 to us, subject to certain funding milestones. Once we have reached a defined milestone, upon at least five (5) calendar days’ prior written notice, the Sponsor may require a drawdown against Polar’s capital commitment (the “ Polar Capital Investment”), in order to meet the Sponsor’s commitment to us under a drawdown request. As of , we had drawn $ on the Polar Capital Investment that was fair valued at $ . The Polar Capital Investment will be repaid to Polar by us upon the closing of an initial Business Combination. Polar may elect to receive such repayment (i) in cash or (ii) in Class A Ordinary Shares at a rate of one Class A Ordinary Share for each ten dollars of the Polar Capital Investment. In the event we liquidate without consummating a Business Combination, any amounts remaining in our cash accounts (excluding the Trust Account) will be paid by us to Polar within five (5) calendar days of the liquidation, and such amounts will be the sole recourse for Polar.

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On November 21, 2024, we issued the 2024 Promissory Note in the aggregate principal amount of up to $2,500,000 to the Sponsor. The 2024 Promissory Note was issued in connection with advances the Sponsor has previously made and may make in the future to us for working capital expenses.