Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 517

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 2
Chunk 517
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will not generate any operating revenues until after the completion of our initial Business Combination, at the earliest. We will generate
non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering and the Private Placement.

We
completed our Initial Public Offering of 20,000,000 Units, each Unit consisting of one Public Share and one-third of one Public Warrant,
at $10.00 per Unit on October 19, 2021. The Units were sold at an offering price of $10.00 per Unit, generating gross proceeds of $200
million. Certain Institutional Anchor Investors that are not affiliated with us, our Legacy Sponsor and our certain of our Prior Directors
and Officers purchased 20,000,000 Units sold in the Initial Public Offering.

27

Simultaneously
with the closing of the Initial Public Offering and pursuant to the Private Placement Warrants Purchase Agreement, we consummated the sale of 4,666,667 Private Placement Warrants at a price of
$1.50 per Private Placement Warrant to our Legacy Sponsor in the Private
Placement, generating gross proceeds of $7 million. Concurrently
with the closing of the Private Placement, the Institutional Anchor Investors paid the Legacy Sponsor $280,000 for the transfer of
an aggregate of 186,667 Private Placement Warrants, which transfer will take place upon the closing of the initial Business
Combination.

The
Institutional Anchor Investors also purchased equity interests of the Legacy Sponsor equivalent to 1,547,727 Founder Shares from the
Legacy Sponsor at the original purchase price of $0.004 per share. Following the approval of the Founder Share Amendment Proposal by
our shareholders at the 2023 EGM, the Founder Shares may be converted into Class A Ordinary Shares at any time at the election of a holder
of Founder Shares or at the time of our initial Business Combination, on a one-for-one basis, subject to adjustment as provided in the
Amended and Restated Charter.

Following
the closing of our Initial Public Offering on October 19, 2021, an amount of $200,000,000 ($10.00 per Unit) from the net proceeds of
the sale of the Units in our Initial Public Offering and the Private Placement was placed in the Trust Account located in the United
States and were initially invested only in (i) U.S. government treasury obligations with a maturity of 185 days or less or (ii) money
market funds meeting certain conditions under