Company: CDAQF
Filing Date: 2025-03-13
Form Type: PRE 14A
Source: 0001493152-25-010116
Chunk: 63

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-13
Form: PRE 14A
Chunk 63
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 provided in the first resolution in Annex Aattached to this Proxy Statement.

Reasons for the Third Extension Amendment and Third Extension Amendment Proposal

As discussed below, after careful consideration of all relevant factors, our Board has determined that the Third Extension Amendment is in the best interests of our Company. The Amended and Restated Charter provide that we have until the Second Extended Date to complete an initial Business Combination. Because we continue to believe that a Business Combination would be in the best interests of our Company and because we believe we will not be able to conclude the EEW Business Combination within the permitted time period, the Board has determined we need the Third Extension Amendment to allow us more time to complete the EEW Business Combination.

The IPO Prospectus and Amended and Restated Charter provide that a special resolution of our shareholders is required to alter or add to the Amended and Restated Charter. Additionally, our IPO Prospectus and Amended and Restated Charter provide for all Public Shareholders to have an opportunity to redeem their Public Shares if any amendment is made to our Amended and Restated Charter to modify the substance or timing of our obligation to allow redemption (i) in connection with a Business Combination or (ii) redeem 100% of the Public Shares if we do not consummate a Business Combination within the Combination Period. Because we continue to believe that a Business Combination would be in the best interests of our Company, and because we believe we will not be able to conclude the EEW Business Combination within the Combination Period, the Board has determined to seek shareholder approval to extend the date by which we have to complete a Business Combination beyond the Second Extended Date to the Third Extended Date. We intend to hold another shareholder meeting prior to the Third Extended Date in order to seek shareholder approval of the EEW Business Combination.

We believe that the foregoing Amended and Restated Charter provision was included to protect our shareholders from having to sustain their investments for an unreasonably long period if we failed to find a suitable Business Combination in the timeframe contemplated by the Amended and Restated Charter.

We are not asking you 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 in the Third Extension Redemptions, you will retain the right to vote on the Business Combination in the future and the right to redeem your Public Shares at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (which interest shall be net of