Company: CDAQF
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001641172-25-000430
Chunk: 49

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 49
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 ties with, any non-U.S. persons. EEW is a company formed under the laws of England and Wales and Pubco is a Cayman Island exempted company.

Outside the United States, laws or regulations may affect our ability to consummate a Business Combination with potential target companies incorporated or having business operations in jurisdictions where national security considerations, involvement in regulated industries (including telecommunications), or in businesses where a country’s culture or heritage may be implicated.

U.S. and foreign regulators generally have the power to deny the ability of the parties to consummate a transaction or to condition approval of a transaction on specified terms and conditions, which may not be acceptable to us or a target. In such event, we may not be able to consummate a transaction with that potential target.

As a result of these various restrictions, the pool of potential targets with which we could complete an initial Business Combination may be limited and we may be adversely affected in terms of competing with other SPACs that do not have similar ownership issues. Moreover, the process of government review, whether by CFIUS or otherwise, could be lengthy. Because we have only a limited time to complete our initial Business Combination, our failure to obtain any required approvals within the requisite time period may require us to liquidate. If we liquidate, our Public Shareholders may only receive approximately $11.22 per Public Share (as of March 21, 2025 and before taking into account the removal of the accrued interest in the Trust Account to pay our taxes, if any, and up to $50,000 for dissolution expenses), and our Warrants will expire worthless. This will also cause you to lose any potential investment opportunity in a target company and the chance of realizing future gains on your investment through any price appreciation in the combined company.

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<div align='center'>BACKGROUND</div>

We are a blank check company incorporated as a Cayman Islands exempted company on March 8, 2021, for the purpose of effecting a Business Combination.

There are currently 5,681,485Class A Ordinary Shares and 2,110,122 Class B Ordinary Sharesissued and outstanding. In addition, we issued (i) Public Warrants to purchase 7,080,163 Class A Common Stock as part of our IPO and (ii) 4,832,065 Private Placement Warrants as part of the Private Placement and in connection with the IPO underwriter’s partial exercise of its over-allotment option. Each whole Warrant entitles its