Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 94

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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stantially concurrently with the closing of the Private Placement, the Institutional Anchor
Investors paid the Legacy Sponsor $280,000 for the transfer of an aggregate of 186,667 Private Placement Warrants, which transfer will
take place upon the closing of the initial Business Combination. In connection with the partial exercise of the Over-Allotment option,
the Legacy Sponsor purchased an additional 165,398 Private Placement Warrants at a purchase price of $1.50 per whole Private Placement
Warrant.

Each Private Placement Warrant
is identical to the Public Warrants, except there are no redemption rights or liquidating distributions from the Trust Account with respect
to Private Placement Warrants, which will expire worthless if the Company does not consummate a Business Combination within the Combination
Period.

NOTE 5 - RELATED PARTY TRANSACTIONS

Founder Shares

On March 9, 2021, the Company issued an aggregate
of 5,750,000 Class B Ordinary Shares (the “Founder Shares”) to the Legacy Sponsor for an aggregate purchase price of $25,000.
On May 13, 2021, the Legacy Sponsor transferred an aggregate of 721,402 Founder Shares to the Company’s independent directors at
their original issue price. The Founder Shares include an aggregate of up to 750,000 shares subject to forfeiture by the Legacy Sponsor
to the extent that the Over-Allotment Option was not exercised in full or in part, so that the Legacy Sponsor would collectively own,
on an as-converted basis, 20% of the Company’s issued and outstanding shares after the Initial Public Offering. On November 30,
2021, the underwriters partially exercised the Over-Allotment Option to purchase an additional 1,240,488 Units. As a result, the Company
forfeited 439,878 Class B Ordinary Shares. On October 19, 2023, the Sponsors converted an aggregate of 600,000 Founder Shares on a one-for-one
basis into Class A Ordinary Shares in the 2023 Founder Share Conversion. As of March 31, 2025 and December 31, 2024, the Company had 2,110,122
Class B Ordinary Shares issued and outstanding.

Pursuant to the Letter Agreement, the Sponsors have
agreed not to transfer, assign or sell any of their Founder Shares until the earlier to occur of: (i) one year after the completion of
a Business Combination or (ii) the date