Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 44

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 44
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 Services Agreement. These agreements
contain various provisions that our Public Shareholders might deem to be material. For example, our Insider Letter and the Underwriting
Agreement contain certain lock-up provisions with respect to the Founder Shares and other securities held by our Sponsors, Prior Directors
and Officers and current directors and officers, subject to certain exceptions. Amendments or waivers to such agreements would require
the consent of the applicable parties thereto and, in certain cases, the consent of the underwriters of the Initial Public Offering.
Any such modification, such as an amendment to shorten lock-up restrictions, may benefit our Sponsors, Prior Directors and Officers and
current directors and officers. Any such amendments would not require approval from our shareholders, may result in the completion of
our initial Business Combination that may not otherwise have been possible, and may have an adverse effect on the value of an investment
in our securities. For example, although we would not amend lock-up provisions to permit securities held by Sponsors to be freely sold
prior to our initial Business Combination, we may amend such provisions to permit them to be freely sold after the Business Combination
earlier than they would otherwise be permitted, which may have an adverse effect on the price of our securities.

Uncertainty in connection with certain international
economic and political relationships, including the imposition of tariffs on international trade, political disputes, regulatory changes
and other international matters could have a material adverse effect on our ability to identify potential targets and to consummate our
initial Business Combination, and could adversely affect the financial performance of any target, either foreign or domestic. 

The international economic and political environment is dynamic and subject
to change.  There is currently significant uncertainty about the future economic and political relationships between the United States
and a number of other countries. These uncertainties include, among other things, the potential imposition of protective tariffs on goods
imported from other countries and reciprocal tariffs other countries may impose on United States products, political disputes that may
affect relationships between the United States and other countries and the imposition of regulatory or other restrictions on trade and
commerce. Any such matters could potentially limit the number of potential targets we may consider, and could also have a material adverse
effect on the financial performance of such potential targets. Among other things, historical financial performance of companies affected
by these international matters may not provide as accurate a barometer of future performance as would pertain in a more stable economic
environment.

For
additional risks relating to our operations, other than as set forth above,