Company: CDAQF
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001641172-25-000430
Chunk: 54

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 54
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For more information about the prior extensions of our Combination Period, see the 2024 Annual Report.

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Founder Share Conversions

On October 19, 2023, following the approval by our shareholders at the First Shareholder Meeting of a proposal to provide for the right of a holder of Class B Ordinary Shares to convert such shares into Class A Ordinary Shares on a one-for-one basis at any time and from time to time prior to the closing of a Business Combination at the election of the holder, we issued an aggregate of 600,000 Class A Ordinary Shares to the Sponsors upon the conversion of an equal number of Class B Ordinary Shares held by the Sponsors as Founder Shares ( the “ 2023 Founder Share Conversion”).

On July 24, 2024, in connection with the Second Shareholder Meeting and the 2024 Redemptions, the Sponsors also converted an aggregate of 2,600,000 Founder Shares on a one-for-one basis into Class A Ordinary Shares (the “ 2024 Founder Share Conversion” and together with the 2023 Founder Share Conversion, the “ Founder Share Conversions”).

The Class A Ordinary Shares issued in the Founder Share Conversions are subject to the same restrictions as applied to the Class B Ordinary Shares before the Founder Share Conversions, includingthe Sponsors’ agreement not to transfer, assign or sell any of their Founder Shares until the earlier to occur of: (i) one year after the completion of a Business Combination or (ii) the date on which we complete a liquidation, merger, capital share exchange or similar transaction that results in our shareholders having the right to exchange their Ordinary Sharesfor cash, securities or other property. Notwithstanding the foregoing, if the last reported sale price of the Class A Ordinary Sharesequals or exceeds $12.00 per share (as adjusted for share splits, share dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Business Combination, the Founder Shares will be released from the lock-up.

Following the Sponsor Handover, the Founder Share Conversions and the Extension Redemptions, there were 5,681,485Class A Ordinary Shares and 2,110,122 Class B Ordinary Shares issued and outstanding and the Prior Sponsor and Sponsor hold approximately 28.45% and 39.70%, respectively, of the total issued and outstanding Ordinary Shares.

For more information about the Founder Share