Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 337

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1B
Chunk 337
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 option and subject to certain conditions, up to $1,375,000 of the unpaid principal amount of the 2024 Promissory
Note may be converted into the 2024 Note Warrants to purchase Class A Ordinary Shares at a conversion price of $1.50 per 2024 Note Warrant.
The 2024 Note Warrants shall be identical to the Private Placement Warrants. The 2024 Note Warrants and their underlying securities are
entitled to the registration rights set forth in the 2024 Promissory Note. As of December 31, 2024 and 2023, there was $1,115,000 and
$0, respectively, outstanding under the 2024 Promissory Note.

Polar
Capital Investment

On
September 6, 2023, we entered into the Polar Subscription Agreement with the Sponsor and Polar, 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 on at least five (5) calendar
days’ prior written notice, the Sponsor may require a drawdown against Polar’s capital commitment, a Polar Capital Investment,
in order to meet the Sponsor’s commitment to us under a drawdown request. 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. As
of December 31, 2024 and 2023, we had drawn $1,250,000 and $500,000 under the Polar Capital Investment, respectively, that was fair valued
at $227,273 and $90,909, respectively.

Any
of the foregoing payments to our Sponsors, repayments of loans from our Sponsors, or affiliates of our Sponsors, or repayments of any
Working Capital Loans and the Polar Capital Investment prior to our initial Business Combination will be made using funds held outside
the Trust Account.

Non-Redemption
Agreements

Between
October