Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 129

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 129
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 Agreement, our Sponsors, former and current directors and officers will not propose any amendment to our Amended
and Restated Charter (i) to modify the substance or timing of our obligation to allow redemption in connection with our initial Business
Combination or to redeem 100% of our Public Shares if we do not complete our initial Business Combination within the Combination Period
or (ii) with respect to any other material provisions relating to shareholders’ rights or pre-initial Business Combination activity,
unless we provide our Public Shareholders with the opportunity to redeem their Public Shares upon approval of any such amendment at a
per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the
funds held in the Trust Account and not previously released to us to pay our taxes, divided by the number of then outstanding Public
Shares.

Non-Redemption
Agreements

Between
October 9, 2023 and October 19, 2023, we entered into the 2023 Non-Redemption Agreements with the Sponsor and unaffiliated third-party
investors in exchange for such investors agreeing not to redeem an aggregate of 4,998,734 Public Shares in connection with the vote to
approve the Charter Amendment Proposals at the 2023 EGM. In exchange for these commitments not to redeem such Public Shares, the Sponsor
agreed to transfer to such investors an aggregate of 749,810 Founder Shares held by the Sponsor promptly following the closing of the
Business Combination (but no later than two business days after the satisfaction of the requisite conditions to such transfer).

We
estimated the aggregate fair value of the 749,810 Founder Shares attributable to such investors pursuant to the 2023 Non-Redemption Agreements
to be $3,444,008 or on a weighted average of $4.59 per share, which is estimated by taking into consideration the estimated probability
of the consummation of a Business Combination, estimated concessions and estimated cost of carrying charges to eliminate the investors’
exposure to changes in the price of their Founder Shares. The fair value of the Founder Shares was determined to be an expense in accordance
with SEC Staff Accounting Bulletin Topic 5T, “Accounting for Expenses or Liabilities Paid by Principal Stockholder(s)” (the
“SAB 5T”).

Between
July 17, 2024 and July 18, 2024, we entered into the 2024 Non-Red