Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 7

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 the Business Combination on a one-for-one basis, subject to adjustment as provided in its Amended
and Restated Memorandum and Articles of Association (as amended and currently in effect, the “Amended and Restated Charter”).

Transaction costs amounted to $11,929,189, consisting
of $4,000,000 of underwriting fees, $7,000,000 of deferred underwriting fees and $929,189 of other offering costs. Of these transaction
fees, the Company subsequently obtained a discount related to the underwriter fees of $199,999 and expensed $631,124 related to the allocation
of offering costs and Founders Shares to Warrant expense. Other non-cash transaction costs include the fair value in excess of consideration
of $10,414,655 in relation to Founder Shares purchased by Institutional Anchor Investors. Subsequent to the Initial Public Offering close,
there was an additional $676,712 in related transaction offering costs incurred, of which $37,917 related to the allocation of offering
costs and Founders Shares to Warrant expense in 2021.

Following the closing of the Initial Public Offering
on October 19, 2021, an amount of $200,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public
Offering and the sale of the Private Placement Warrants in the Private Placement was placed in a trust account located in the United States
(the “Trust Account”) to be invested only in U.S. government treasury obligations with a maturity of 185 days or less or in
money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act of 1940, as amended (the “Investment
Company Act”), which invest only in direct U.S. government treasury obligations, as determined by the Company, until the earlier
of: (i) the completion of a Business Combination and (ii) the distribution of the Trust Account, as described below. On October 19, 2023,
the Company instructed Continental Stock Transfer & Trust Company, the trustee of the Trust Account (“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 the initial Business
Combination or the Company’s liquidation. As a result,