Company: CDAQF
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001641172-25-000430
Chunk: 22

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 22
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 a special meeting to consider the Business Combination.                                                                        |

The purpose of the Third Extension Amendment Proposal and, if necessary, the Adjournment Proposal, is to allow us additional time to complete the EEW Business Combination, if needed. The Third Extension Amendment Proposal is required to proceed with our Board’s plan to extend the date that we have to complete an initial Business Combination, specifically the EEW Business Combination.

While we are using our best efforts to complete the EEW Business Combination as soon as practicable, the Board believes that there will likely not be sufficient time before April 19, 2025 to complete the EEW Business Combination. Accordingly, the Board believes that in order to be able to consummate the EEW Business Combination, we will need to obtain the Third Extension. Without the Third Extension, the Board believes that there is significant risk that we might not, despite our best efforts, be able to complete the EEW Business Combination or another initial Business Combination on or before April 19, 2025. If that were to occur, we would be precluded from completing the EEW Business Combination or another initial Business Combination and would be forced to liquidate even if our shareholders are otherwise in favor of consummating such transaction.

Therefore, the Board has determined that it is in the best interests of our Company to extend the date by which we have to consummate the EEW Business Combination (or if the EEW Business Combination is not consummated, another initial Business Combination) to the Third Extended Date in order for our shareholders to have the opportunity to participate in our future investment.

If the Third Extension Amendment Proposal is approved, subject to satisfaction of the conditions to closing in the EEW Business Combination Agreement (including, without limitation, receipt of shareholder approval of the EEW Business Combination), we intend to complete the EEW Business Combination as soon as possible, and in any event, on or before the Third Extended Date. However, there is no assurance that we will be able to consummate the EEW Business Combination, given the actions that must occur prior to closing of the EEW Business Combination.

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The Board believes that given our expenditure of time, effort and money on the EEW Business Combination, circumstances warrant ensuring that we are in the best position possible to consummate the EEW Business Combination and that it is in the best interests of our Company that we obtain the Third Extension, if needed. We believe that the EEW Business Combination will provide significant benefits to our shareholders. For more information about