Company: CDAQF
Filing Date: 2025-03-13
Form Type: PRE 14A
Source: 0001493152-25-010116
Chunk: 33

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-13
Form: PRE 14A
Chunk 33
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 Combination until the Third Extended Date. The Public Warrants will remain outstanding and only become exercisable 30 days after the completion of a Business Combination, provided that we have an effective registration statement under the Securities Act covering the Class A Ordinary Shares issuable upon exercise of the Warrants and a current prospectus relating to them is available (or we permit holders to exercise Warrants on a cashless basis).

What happens to our Warrants if the Charter Amendment Proposals are not approved?

If the Charter Amendment Proposals are not approved, and we do not consummate the Business Combination by the Second Extended Date, there will be no redemption rights or liquidating distributions with respect to our Warrants, which will expire worthless if we fail to complete our Business Combination within the Combination Period.

Will whether or how I vote on any of the Proposals affect my ability to exercise my redemption rights in the Third Extension Redemptions?

No. You may exercise your redemption rights in the Third Extension Redemptions whether or not you are a holder of Public Shares on the Record Date, so long as you are a holder at the time of your Election (and subsequent redemption payment, and vote your Public Shares however you would like, or not at all, on the Third Extension Amendment Proposal or any other Proposal). As a result, all of the Proposals can be approved by shareholders who will redeem their Public Shares in the Third Extension Redemptions and no longer remain shareholders, leaving shareholders who choose not to redeem their Public Shares holding shares in a company with a potentially less liquid trading market, fewer shareholders and potentially less cash.

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Additionally, redemption payments for Elections in the Third Extension Redemptions will only be made if the Charter Amendment Proposals receive the requisite shareholder approvals. If you do not redeem your Public Shares in the Third Extension Redemptions, you will retain your right to redeem your Public Shares upon consummation of the Business Combination, subject to any limitations set forth in the Amended and Restated Charter.

Will whether or how I vote on any of the Proposals affect my ability to exercise my redemption rights in connection with the Business Combination?

Unless you elect to redeem your Public Shares at this time in an Election in the Third Extension Redemptions, you will be able to vote on the Business Combination when it is submitted to shareholders if you are a shareholder on the record date for a meeting to seek shareholder approval of the Business Combination. If you do not vote in connection with the Meeting, or you vote against any of the Proposals at