Company: CDAQF
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023544
Chunk: 155

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 155
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000 to GCG, an affiliate of our Legacy Sponsor. The 2021 Promissory
Note bears no interest and is repayable in full upon consummation of the initial Business Combination. GCG has the option to convert
any unpaid balance of the 2021 Promissory Note into 2021 Note Warrants to purchase one share of Class A Ordinary Shares equal to the
principal amount of the 2021 Promissory Note so converted divided by $1.50. The terms of any such 2021 Note Warrants will be identical
to the terms of the Private Placement Warrants. As of June 30, 2025 and December 31, 2024, we had borrowed an aggregate of $125,000 under
the 2021 Promissory Note.

2024
Promissory Note

On
November 21, 2024, there was a written agreement put in place for the 2024 Working Capital Loan when we issued the 2024 Promissory Note
in the aggregate principal amount of up to $2,500,000 to the Sponsor. The 2024 Promissory Note bears no interest and is repayable in
full upon the earlier of (i) the date on which we consummate an initial Business Combination and (ii) the date of our liquidation. If,
prior to the Business Combination, the principal balance of the 2024 Promissory Note has not been paid in full, then, at the Sponsor’s
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 June 30, 2025 and December 31, 2024, there was $1,532,122 and $1,115,000, respectively,
outstanding under the 2024 Promissory Note.

24

Polar
Capital Investment

On
September 6, 2023, we entered into the Polar Subscription Agreement with Polar and the Sponsor, pursuant to which Polar agreed to make
the Polar Capital Investment