Company: CDAQF
Filing Date: 2025-03-13
Form Type: PRE 14A
Source: 0001493152-25-010116
Chunk: 23

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-13
Form: PRE 14A
Chunk 23
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 Board has determined that it is in the best interests of our Company to extend the date by which we have to consummate the EEW Business Combination (or if the EEW Business Combination is not consummated, another initial Business Combination) to the Third Extended Date in order for our shareholders to have the opportunity to participate in our future investment.

If the Third Extension Amendment Proposal is approved, subject to satisfaction of the conditions to closing in the EEW Business Combination Agreement (including, without limitation, receipt of shareholder approval of the EEW Business Combination), we intend to complete the EEW Business Combination as soon as possible, and in any event, on or before the Third Extended Date. However, there is no assurance that we will be able to consummate the EEW Business Combination, given the actions that must occur prior to closing of the EEW Business Combination.

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The Board believes that given our expenditure of time, effort and money on the EEW Business Combination, circumstances warrant ensuring that we are in the best position possible to consummate the EEW Business Combination and that it is in the best interests of our Company that we obtain the Third Extension, if needed. We believe that the EEW Business Combination will provide significant benefits to our shareholders. For more information about the EEW Business Combination, see the EEW Business Combination Form 8-K. Accordingly, the Board is proposing the Third Extension Amendment Proposal to amend our Amended and Restated Charter, as provided in the resolutions set forth in Annex Ahereto, to extend the date by which we must (i) consummate a Business Combination, (ii) cease our operations if we fail to complete such Business Combination, and (iii) redeem or repurchase 100% of the Public Shares sold in our IPO from April 19, 2025 to April 20, 2026 (or such earlier date as determined by the Board).

You are not being asked to vote on the Business Combination at this time. If the Charter Amendment Proposals are approved and you do not elect to redeem your Public Shares, provided that you are a shareholder on the record date for a meeting to consider the Business Combination, you will retain the right to vote on the Business Combination when it is submitted to shareholders and the right to redeem your Public Shares for cash in the event the Business Combination is approved and completed or we have not consummated a Business Combination by the Third Extended Date.

Why are we proposing the Redemption Limitation Amendment Proposal?

The Amended and Restated Charter provides that