Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 136

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 136
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to trade policies. The business prospects of a particular target for a Business Combination could change as a result of tariffs or the threat of tariffs that may have a material impact on that target’s business,
and it may be costly or impractical for us to terminate that Business Combination agreement. 

We
may not be able to adequately address the risks presented by these tariffs or other potential trade policy changes. As a result, we may
deem it costly, impractical or risky to complete an initial Business Combination with a particular target or with a target in a particular
industry or from a particular country. This could impair our ability
to complete an initial Business Combination with EEW or any other target. If we complete an initial Business Combination with such
a target, the post-Business Combination company’s operations and financial results could be adversely affected as a result
of tariffs or changes to trade policies, which may cause the market value of the securities of the post-Business Combination company
to decline.

29

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.

Unregistered
Sales of Equity Securities

None.

Use
of Proceeds

For
a description of the use of proceeds generated in our Initial Public Offering and Private Placement, see Part II, Item 2 of our Quarterly
Report on Form 10-Q for the quarterly period ended September 30, 2021, as filed with the SEC on November 23, 2021. There has been no
material change in the planned use of proceeds from our Initial Public Offering and Private Placement as described in the IPO Registration
Statement. The specific investments in our Trust Account may change from time to time.

On
October 19, 2023, we instructed Continental to liquidate the investments held in the Trust Account and instead to hold the funds in the
Trust Account in an interest-bearing demand deposit account at Citibank, N.A., with Continental continuing to act as trustee, until the
earlier of the consummation of our initial Business Combination or our liquidation. As a result, following the liquidation of investments
in the Trust Account, the remaining proceeds from the Initial Public Offering and Private Placement are no longer invested in U.S. government
securities or money market funds invested in U.S. government securities.

Purchases
of Equity Securities by the Issuer and Affiliated Purchasers

None.

Item
3. Defaults Upon Senior Securities.

None.

Item
4. Mine Safety Disclosures.

Not
app