Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 4

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 4
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September 5, 2024, we entered into the EEW Business 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 EEW 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
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 (the “Pubco Ordinary Shares”), all upon the terms and subject to the conditions
set forth in the EEW 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 EEW Business Combination,
our Company and EEW each will become a wholly-owned subsidiary of Pubco, and Pubco will become a publicly traded company upon the Closing.

The
below subsection describes the material provisions of the EEW Business Combination Agreement, but does not purport to describe all the
terms thereof. This summary of the EEW Business Combination Agreement is qualified in its entirety by reference to the complete text
of the EEW Business Combination Agreement, a copy of which is filed with the Report as Exhibit 2.1 and incorporated by reference herein.
Unless otherwise defined herein, the capitalized terms used in this subsection have the same meanings given to them in the EEW Business
Combination Agreement. Unless otherwise indicated, this Report does not assume the closing of the EEW Business Combination.

Share
Exchange and Consideration

The
base consideration to be paid to the Sellers is $300,000,000 (subject to increase to the extent that our unpaid transaction expenses
and cash liabilities as of the Closing that the Sponsor does not pay in cash exceeds $5,000,000, and subject to decrease to the extent
that the amount