Company: CDAQF
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001641172-25-000430
Chunk: 30

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 30
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 the approximately $27.85 million that was in the Trust Account as of March 21, 2025.

In addition, the Amended and Restated Charter provides that we cannot redeem or repurchase Public Shares to the extent such redemption would result in our failure to have at least $5,000,001 of net tangible assets. As a result, our Board will not proceed with the Third Extension unless the Redemption Limitation Amendment Proposal is approved or if we will have at least $5,000,001 of net tangible assets following approval of the Third Extension Amendment Proposal, after taking into account the Third Extension Redemptions.

What happens if the Third Extension Amendment Proposal is not approved?

If there are insufficient votes to approve the Third Extension Amendment Proposal, we may put the Adjournment Proposal to a vote in order to seek additional time to obtain sufficient votes in support of the Third Extension Amendment Proposal. For the avoidance of doubt, if put forth at the Meeting, the Adjournment Proposal will be the first and only proposal voted on and the Third Extension Amendment Proposal, the Redemption Ratification Proposal and the Auditor Ratification Proposal will not be submitted to the shareholders for a vote at such time.

If the Third Extension Amendment Proposal is not approved, and the Business Combination is not completed within the Combination Period, then as contemplated by and in accordance with the Amended and Restated Charter, we will (i) cease all operations except for the purpose of winding up; (ii) as promptly as reasonably possible, but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to (less taxes payable, if any, and up to $50,000 of interest to pay dissolution expenses), divided by the number of then Public Shares in issue, which redemption will completely extinguish Public Shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any); and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining shareholders and our Board, liquidate and dissolve, subject in the case of clauses (ii) and (iii) to our obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of applicable law. There will be no redemption rights or liquidating distributions with respect to our Warrants, which will expire worthless if we fail to