Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 34

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 34
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 may have acted in bad faith, and thereby exposing itself and our company to claims of punitive
damages, by paying Public Shareholders from the Trust Account prior to addressing the claims of creditors. We cannot assure you that
claims will not be brought against us for these reasons.

18

Our
Public Shareholders will be entitled to receive funds from the Trust Account only (i) in the event of the redemption of our Public Shares
if we do not complete our initial Business Combination within the Combination Period, (ii) in connection with a shareholder vote to amend
our Amended and Restated Charter (x) to modify the substance or timing of our obligation to allow redemption in connection with our initial
Business Combination or to redeem 100% of our Public Shares if we do not complete our initial Business Combination within the Combination
Period or (y) with respect to any other material provisions relating to shareholders’ rights or pre-initial Business Combination
activity or (iii) if they redeem their respective Public Shares for cash upon the completion of our initial Business Combination. In
no other circumstances will a shareholder have any right or interest of any kind to or in the Trust Account. In the event we seek shareholder
approval in connection with our initial Business Combination, a Public Shareholder’s voting in connection with the Business Combination
alone will not result in a Public Shareholder’s redeeming its shares to us for an applicable pro rata share of the Trust Account.
Such Public Shareholder must have also exercised its redemption rights described above. These provisions of our Amended and Restated
Charter, like all provisions of our Amended and Restated Charter, may be amended with a shareholder vote.

Competition

In
identifying, evaluating and selecting a target business for our initial Business Combination, such as EEW, we have encountered and may
continue to encounter competition from other entities having a business objective similar to ours, including other SPACs, private equity
groups and leveraged buyout funds, public companies and operating businesses seeking strategic acquisitions. Many of these entities are
well established and have extensive experience identifying and effecting Business Combinations directly or through affiliates. Moreover,
many of these competitors possess similar or greater financial, technical, human and other resources than us. Our ability to acquire
larger target businesses is limited by our available financial resources. This inherent limitation gives others an advantage in pursuing
the acquisition of a target business. Furthermore, our obligation to pay cash in connection with our Public Shareholders who exercise
their redemption rights may