Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 869

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 5
Chunk 869
---
19, 2021. No additional borrowing is available under the IPO Promissory Note.

32

Working
Capital Loans

In
order to finance transaction costs in connection with a Business Combination, our Initial Shareholders,
Sponsors or an affiliate of the Initial Shareholders or Sponsors, or certain of our Prior Directors and Officers or current directors
and officers may, but are not obligated to, provide us Working Capital Loans. Such Working Capital Loans would be evidenced by
promissory notes. The notes would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s
discretion, up to $1,500,000 of notes may be converted upon consummation of a Business Combination into warrants at a price of $1.50
per warrant. Such warrants would be identical to the Private Placement Warrants. In the event that a Business Combination does not close,
we may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust
Account would be used to repay the Working Capital Loans.

2021
Promissory Note

On
December 30, 2021, there was a written agreement put in place for the 2021 Working Capital Loan when we issued the 2021 Promissory Note,
an unsecured promissory note in the principal amount of up to $1,000,000 to GCG, an affiliate of our Legacy Sponsor. The 2021 Promissory
Note bears no interest and is repayable in full upon consummation of the initial Business Combination. GCG has the option to convert
any unpaid balance of the 2021 Promissory Note into 2021 Note Warrants to purchase one share of Class A Ordinary Shares equal to the
principal amount of the 2021 Promissory Note so converted divided by $1.50. The terms of any such 2021 Note Warrants will be identical
to the terms of the Private Placement Warrants. As of December 31, 2024 and 2023, we had borrowed an aggregate of $125,000 under the
2021 Promissory Note.

2024
Promissory Note

On
November 21, 2024, there was a written agreement put in place for the 2024 Working Capital Loan when we issued the 2024 Promissory Note
in the aggregate principal amount of up to $2,500,000 to the