Company: CDAQF
Filing Date: 2025-03-13
Form Type: PRE 14A
Source: 0001493152-25-010116
Chunk: 55

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-13
Form: PRE 14A
Chunk 55
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 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 Conversions, see the 2024 Annual Report.

Trading of Our Securities

On October 15, 2024 we received a letter from the Listing Qualifications Department of Nasdaq, which stated that the staff of The Nasdaq Stock Market LLC( “ Nasdaq” and its staff, the “ Nasdaq Staff”) had determined that (i) our securities would be delisted from Nasdaq, (ii) trading of our Class A Ordinary Shares, Public Warrants, and Units would be suspended at the opening of business on October 22, 2024 and (iii) a Form 25-NSE would be filed with the SEC, which would remove our securities from listing and registration on Nasdaq. Under Nasdaq listing rules, a SPAC must complete one or more business combinations within