Company: CDAQF
Filing Date: 2025-03-25
Form Type: DEF 14A
Source: 0001641172-25-000430
Chunk: 29

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: DEF 14A
Chunk 29
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 December 31, 2024 (each term as defined in the section of this Proxy Statement entitled “ Background”) and (iv) a promissory note in the principal amount of up to $2,500,000 issued to the Sponsor on November 21, 2024in connection with working capital loans made to us by the Sponsor, of which $1,115,000 was outstanding as of December 31, 2024 (the “ 2024 Promissory Note”).

See the section of this Proxy Statement entitled “ The Meeting — Interests of the Sponsors, Directors and Officers”.

The Charter Amendment Proposals

If the Third Extension Amendment Proposal is approved, what happens next?

Upon approval of the Third Extension Amendment Proposal by the affirmative vote of at least two-thirds (2/3) of the shareholders entitled to vote who attend and vote at the Meeting, (i) the Third Extension Amendment will be effective and (ii) we will file the Third Extension Amendment, as provided in the resolutions set forth in Annex A, with the Cayman Islands Registrar of Companies. We will remain a reporting company under the Exchange Act and our Units, Public Shares and Public Warrants will remain publicly traded. We will then continue to work to consummate the EEW Business Combination by the Third Extended Date. However, if the Third Extension Amendment Proposal is approved, our Board will have the right, without any further action by our shareholders, to decide to liquidate our Company at any time prior to April 20, 2026.

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If the Third Extension Amendment Proposal is approved, and one or more of our shareholders elect to redeem their Public Shares pursuant to the Third Extension Redemptions, we will remove from the Trust Account and deliver to the holders of such redeemed Public Shares the Withdrawal Amount, and retain the remainder of the funds in the Trust Account for our use in connection with consummating the EEW Business Combination on or before the Third Extended Date. Any such redeemed Public Shares will increase the percentage interest of our Ordinary Shares held by the Sponsors and our directors and officers as a result of their ownership of our Founder Shares, including Class B Ordinary Shares.

If the Third Extension Amendment Proposal is approved, the removal from the Trust Account of the Withdrawal Amount will reduce our net asset value. We cannot predict the amount that will remain in the Trust Account following the Third Extension Redemptions if the Third Extension Amendment Proposal is approved; the amount remaining in the Trust Account may be only a small fraction of