Company: CDAQF
Filing Date: 2025-03-13
Form Type: PRE 14A
Source: 0001493152-25-010116
Chunk: 22

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-13
Form: PRE 14A
Chunk 22
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, to permit further solicitation and vote of proxies in the event that there are insufficient votes for, 
 or otherwise in connection with, the approval of any of the foregoing Proposals.                                                   |

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 Limitation Amendment Proposal and the Auditor Ratification Proposal will not be submitted to the shareholders for a vote at such time.

Why are we proposing the Third Extension Amendment Proposal?

The Amended and Restated Charter provide for the return of the IPO proceeds held in the Trust Account to the holders of Public Shares if there is no qualifying Business Combination consummated on or before the Second Extended Date, the current end of the Combination Period. As explained below, we believe we will not be able to complete a Business Combination by that date and therefore, we are asking for an extension of this timeframe.

Our seeking to complete the EEW Business Combination will involve, among other things:

| ● | preparing                                                                                                                      
 and completing proxy materials;                                                                                                |
| ● | establishing                                                                                                                   
 a meeting date and record date for considering the Business Combination, and distributing proxy materials to shareholders; and |
| ● | holding                                                                                                                        
 a special meeting to consider the Business Combination.                                                                        |

The purpose of the Third Extension Amendment Proposal and, if necessary, the Adjournment Proposal, is to allow us additional time to complete the EEW Business Combination, if needed. The Third Extension Amendment Proposal is required to proceed with our Board’s plan to extend the date that we have to complete an initial Business Combination, specifically the EEW Business Combination.

While we are using our best efforts to complete the EEW Business Combination as soon as practicable, the Board believes that there will likely not be sufficient time before April 19, 2025 to complete the EEW Business Combination. Accordingly, the Board believes that in order to be able to consummate the EEW Business Combination, we will need to obtain the Third Extension. Without the Third Extension, the Board believes that there is significant risk that we might not, despite our best efforts, be able to complete the EEW Business Combination or another initial Business Combination on or before April 19, 2025. If that were to occur, we would be precluded from completing the EEW Business Combination or another initial Business Combination and would be forced to liquidate even if our shareholders are otherwise in favor of consummating such transaction.

Therefore, the