Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 42

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 42
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the Extension Redemptions, 18,759,003 Public Shares were redeemed, thereby reducing the (x) number of outstanding Public Shares to 2,481,485
and (y) total amount held in the Trust Account to approximately $27,637,300 (before taxes payable and as of December 31, 2024).

On
March 13, 2025, we filed the 2025 Proxy Statement in connection with an upcoming extraordinary general meeting in lieu of
an annual general meeting of our shareholders to, among other things, seek (i) an extension of the Combination Period from April 19,
2025 to April 20, 2026 and (ii) to eliminate from the Amended and Restated Charter the Redemption Limitation.

Due
to the high rates of redemptions of Public Shares in connection with shareholder votes on extensions or Business Combinations of SPACs,
we may need to rely upon significant PIPE or other outside financing to provide cash to our post-Business Combination company. Obtaining
financing in connection with initial Business Combinations of SPACs has in recent times been very difficult, with many financings available
only on terms that are onerous to the surviving company of the Business Combination. The failure to secure additional financing on reasonable
terms could have a material adverse effect on the continued development or growth of the target business. None of the Sponsors or our
other shareholders is required to provide any financing to us in connection with or after our initial Business Combination. Raising additional
third-party financing may involve dilutive equity issuances or the incurrence of indebtedness at higher than desirable levels or on onerous
terms. The above considerations may limit our ability to complete a Business Combination in the most desirable manner that will optimize
the capital structure of the combined company, or at all. If we are unable to complete an initial Business Combination, our Public Shareholders
may only receive approximately $11.14 per Public Share on the liquidation of our Trust Account (before taxes payable and up to $50,000
of interest to pay dissolution expenses, as of December 31, 2024), and our Warrants will expire worthless. In certain circumstances,
our Public Shareholders may receive less than approximately $11.14 (before taxes payable and up to $50,000 of interest to pay dissolution
expenses, as of December 31, 2024) per Public Share on the redemption of their Public Shares.

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The share price