Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 73

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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 warrants included in the
Units offered, the “Public Warrants”), at $10.00 per Unit, generating gross proceeds of $200,000,000. Each Unit consists of
one Class A Ordinary Share, par value $0.0001 per share, of the Company (the “Class A Ordinary Shares”), and one-third of
one Public Warrant (see Note 3).

Certain institutional anchor investors that are not
affiliated with the Company, the Legacy Sponsor, or the Company’s officers, directors, or any member of the Company’s management
(“Management” and such investors, the “Institutional Anchor Investors”) purchased an aggregate of 20,000,000 Units
in the Initial Public Offering. The Units were sold at an offering price of $10.00 per Unit, generating gross proceeds of $200,000,000.

Simultaneously with the closing of the Initial Public
Offering, the Company consummated the sale of 4,666,667 warrants (the “Private Placement Warrants,” and together with the
Public Warrants, the “Warrants”) to the Legacy Sponsor at a price of $1.50 per Private Placement Warrant, generating gross
proceeds of $7,000,000 (such sale, the “Private Placement”) (see Note 4). 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
a portion of the equity interests of the Legacy Sponsor equivalent to 1,547,727 Founder Shares (as defined in Note 5) from the Legacy
Sponsor at the original purchase price of $0.004 per share. The Founder Shares may be converted into Class A Ordinary Shares on a one-for-one
basis at any time and from time to time prior to the closing of a Business Combination at the election of the holders and will be automatically
converted into Class A Ordinary Shares at the Business Combination on a one-for-one basis, subject to adjustment as provided in its Amended
and Restated Memorandum and Articles of Association (as amended and currently in effect, the “Amended and Restated Charter”).

Transaction costs amounted to $11,929,189, consisting
of $4,000,000 of underwriting fees, $7,000,000 of deferred under