Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 38

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 The Company will use its commercially
reasonable efforts to cause such registration statement to become effective and to maintain a current prospectus relating to those Class
A Ordinary Shares until the Warrants expire or are redeemed, as specified in the warrant agreement, dated October 14, 2021, that the Company entered
into with Continental, as warrant agent (the “Warrant Agreement”). If a registration statement covering the Class A Ordinary
Shares issuable upon exercise of the Warrants is not effective by the 60th business day after the closing of a Business Combination, warrant
holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to
maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of
the Securities Act or another exemption.

Redemption of Warrants when
the price per Class A Ordinary Share equals or exceeds $18.00. Once the Warrants become exercisable, the Company may redeem the Warrants
for redemption:

    ●
    in whole and not in part;

    ●
    at a price of $0.01 per Public Warrant;

    ●
    upon a minimum of 30 days’ prior written notice of redemption, which is referred to as the 30-day redemption period; and

    ●
    if, and only if, the closing price of the Class A Ordinary Shares equals or exceeds $18.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders (the “Reference Value”).

The Company will not redeem the Warrants as described
above unless an effective registration statement under the Securities Act covering the issuance of the Class A Ordinary Shares issuable
upon exercise of the Warrants is then effective and a current prospectus relating to those Class A Ordinary Shares is available throughout
the 30-day redemption period. If and when the Warrants become redeemable by the Company, the Company may exercise its redemption right
even if the Company is unable to register or qualify the underlying securities for sale under all applicable state securities laws.

Redemption of Warrants when
the price per Class A Ordinary Shares share equals or exceeds $10.00. Once the Warrants become exercisable, the Company