Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 60

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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 Combination Agreement with the Purchaser Representative, EEW, the Sellers, the Seller
Representative and, upon execution of joinders thereto, Pubco and Merger Sub.

Pursuant
to the Business Combination Agreement, subject to the terms and conditions set forth therein, at the Closing, (a) Merger Sub will merge
with and into our Company, with our Company continuing as the surviving entity, and as a result of the Merger, (i) we shall become a
wholly-owned subsidiary of Pubco, and (ii) each issued and outstanding security of our Company immediately prior to the Effective Time
(as defined in the Business Combination Agreement) shall no longer be outstanding and shall automatically be cancelled, in exchange for
the right of the holder thereof to receive a substantially equivalent security of Pubco, (b) Pubco shall acquire all of EEW Ordinary
Shares from the Sellers in exchange for newly issued ordinary shares of Pubco, par value $0.0001 per share, all upon the terms and subject
to the conditions set forth in the Business Combination Agreement and in accordance with the applicable provisions of the Companies Act
and the laws of England and Wales, and any outstanding convertible securities of EEW will be terminated; and (c) as a result of the Transactions,
our Company and EEW each will become a wholly-owned subsidiary of Pubco, and Pubco will become a publicly traded company upon the Closing.

On
November 3, 2025, the Company received the Notice from EEW purporting to terminate the Business Combination Agreement pursuant to Sections
10.1(b) and 10.1(d) thereof. On November 6, 2025, the Company sent a written response to EEW disputing such termination, asserting, among
other things, that the representations, warranties and covenants of the Company set forth in the Business Combination Agreement purported
by EEW in the Notice to have been breached by the Company either were not breached at all or were not breached at a level giving rise
to a termination right, and that, in any event, EEW does not have the right to terminate the Business Combination Agreement due to EEW’s
previous and continuing breaches of certain key covenants of the Business Combination Agreement. Consequently, the Company believes that
EEW’s purported termination of the Business Combination Agreement is invalid under the terms of the Business Combination Agreement.

23

Results
of Operations

Our
entire activity from inception up to September