Company: CDAQF
Filing Date: 2025-03-13
Form Type: PRE 14A
Source: 0001493152-25-010116
Chunk: 53

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-13
Form: PRE 14A
Chunk 53
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 The 2024 Promissory Note bears no interest and is repayable in full upon the earlier of (i) the date on which we consummate an initial Business Combination and (ii) the date of our liquidation. If, prior to the Business Combination, the principal balance of the 2024 Promissory Note has not been paid in full, then, at the Sponsor’s option and subject to certain conditions, up to $1,375,000 of the unpaid principal amount of the 2024 Promissory Note may be converted into warrants to purchase Class A Ordinary Shares at a conversion price of $1.50 per warrant. Such warrants shall be identical to the Private Placement Warrants. These warrants and their underlying securities are entitled to the registration rights set forth in the 2024 Promissory Note. As of , there was $ outstanding under the 2024 Promissory Note.

Sponsor Handover

On August 30, 2023,our Sponsors entered into a Definitive Securities Purchase Agreement (the “ Sponsor Purchase Agreement”), and on August 31, 2023, our Sponsors consummated the transactions contemplated by the Sponsor Purchase Agreement (the “ Sponsor Handover”). Pursuant to the terms of the Sponsor Purchase Agreement, at the Sponsor Handover: (i) the Prior Sponsor transferred 3,093,036 Founder Shares and 4,645,398 Private Placement Warrants to our Sponsor; (ii) our Sponsor agreed to cause us to pay an aggregated amount of $300,000 in cash consideration upon closing of the Business Combination at the Prior Sponsor’s direction to entities or accounts as directed by the Prior Sponsor (including the repayment of $125,000 under the 2023 Promissory Note); (iii) our Sponsor entered into the Registration Rights Agreement Joinder; (iv) the Prior Sponsor assigned the Administrative Services Agreement to our Sponsor; (v) all Prior Directors and Officers resigned, and each member of our Management Team was appointed by our Sponsor; and (vi) we entered into the Insider Agreement Amendment with the Sponsors and the Prior Directors and Officers.For more information about the Sponsor Handover and the Sponsor Purchase Agreement, see the 2024 Annual Report.

Prior Extensions of our Combination Period

We initially had until October 19, 2023, 24 months from the closing of the IPO, to consummate our initial Business Combination.

On October 19, 2023, we held the First Shareholder Meeting at which our shareholders approved,