Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 0

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
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Overview

We
are a blank check company incorporated in the Cayman Islands on March 8, 2021. The Company was formed for the purpose of effectuating
a Business Combination. We are an early-stage and emerging growth company and, as such, we are subject to all of the risks associated
with early-stage and emerging growth companies.

The
2024 SPAC Rules may materially affect our ability to negotiate and complete our initial Business Combination and may increase the costs
and time related thereto.

Initial
Public Offering

On
October 19, 2021, we consummated our Initial Public Offering of 20,000,000 Units. Each Unit consists of one Public Share and one-third
of one Public Warrant, with each whole Public Warrant entitling the holder thereof to purchase one Class A Ordinary Share for $11.50
per share. The Units were sold at a price of $10.00 per Unit, generating gross proceeds of $200,000,000. Certain Institutional Anchor
Investors purchased an aggregate of 20,000,000 Units. The Institutional Anchor Investors also purchased 1,547,727 Founder Shares from
the Legacy Sponsor at the original purchase price of $0.004 per share.

We
granted the Over-Allotment Option to purchase up to an additional 3,000,000 Over-Allotment Units at the Initial Public Offering price
to cover over-allotments, if any. On November 30, 2021, the underwriters of the Initial Public Offering partially exercised the Over-Allotment
Option to purchase an additional 1,240,488 Over-Allotment Units at a price of $10.00 per Over-Allotment Unit, generating gross proceeds
of approximately $12,404,880.

Simultaneously
with the closing of the Initial Public Offering and pursuant to the Private Placement Warrants Purchase Agreement, we completed the private sale of an aggregate of 4,666,667 Private Placement
Warrants to our Legacy Sponsor in the Private Placement at a purchase price of
$1.50 per Private Placement Warrant, generating gross proceeds of $7,000,000. Also, in connection with the partial exercise of the
Over-Allotment Option, the Legacy Sponsor purchased an additional 165,398 Private Placement Warrants at a purchase price of $1.50
per Private Placement Warrant. Concurrently with the closing of the Private Placement, the Institutional