Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 64

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 64
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Underwriting
Agreement

In
connection with the Initial Public Offering, the underwriters were granted the Over-Allotment Option to purchase up to 3,000,000 Over-Allotment
Units, if any. On November 30, 2021, the underwriters purchased an additional 1,240,488 Over-Allotment Units pursuant to the partial
exercise of the Over-Allotment Option. The Over-Allotment Units were sold at an offering price of $10.00 per Over-Allotment Unit, generating
aggregate additional gross proceeds of $12,404,880 to us.

34

The
underwriters of the Initial Public Offering were entitled to a cash underwriting discount of 2.00% of the gross proceeds of the
Initial Public Offering, or $4,000,000 (or $4,600,000 if the Over-Allotment Option was exercised in full) pursuant to the Underwriting Agreement. In addition, the
underwriters were entitled to a deferred fee of three and half percent (3.50%) of the gross proceeds of the Initial Public Offering,
or $7,000,000 (or $8,050,000 if the Over-Allotment Option was exercised in full). The deferred fees were to become payable to the
underwriters from the amounts held in the Trust Account solely in the event that we complete a Business Combination, subject to the
terms of the Underwriting Agreement.

On
August 11, 2023 and August 14, 2023, we received formal confirmations from Citigroup
Global Markets Inc. and J.P. Morgan Securities LLC, informing us of their decisions to waive any
entitlement they may have to their deferred underwriting fees payable held in the Trust Account with respect to any Business Combination.
Out of the release of $7,434,171 deferred underwriting fees, $7,187,357
was charged against accumulated deficit in the balance sheets as of December 31, 2023 and $246,814 is reflected as a gain on settlement
of deferred underwriting fees in the statements of operations contained elsewhere in this Report.

Financial
Advisory Agreements

We
entered into two financial advisory agreements in September and December 2022, respectively, with financial advisors in connection with
our Business Combinations. We agreed to pay success fees for signed letters of intent and any successful acquisition. Success fees range
from $50,000 to