Company: CDAQF
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010268
Chunk: 104

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 104
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 recorded as a liability. Accordingly, the Company has classified each Warrant as a liability at its fair value. This liability is
subject to re-measurement at each balance sheet date. With each such re-measurement, the Warrant liability will be adjusted to fair value,
with the change in fair value recognized in the Company’s condensed statements of operations.

Public Warrants may only be exercised for a whole
number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants will become exercisable
30 days after the consummation of a Business Combination. The Public Warrants will expire five years from the consummation of a Business
Combination or earlier upon redemption or liquidation.

The Company will not be obligated to deliver any Class
A Ordinary Shares pursuant to the exercise of a Public Warrant and will have no obligation to settle such Public Warrant exercise unless
a registration statement under the Securities Act covering the issuance of the Class A Ordinary Shares issuable upon exercise of the Public
Warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying its obligations with respect
to registration. No Public Warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue
any shares to holders seeking to exercise their Public Warrants, unless the issuance of the shares upon such exercise is registered or
qualified under the securities laws of the state of the exercising holder, or an exemption from registration is available.

    16

COMPASS DIGITAL ACQUISITION CORP.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2025

The Company has agreed that as soon as practicable,
but in no event later than 15 business days, after the closing of a Business Combination, it will use its commercially reasonable efforts
to file with the SEC a post-effective amendment to the IPO Registration Statement or a new registration statement covering the registration,
under the Securities Act of the Class A Ordinary Shares issuable upon exercise of the Public Warrants. The Company will use its commercially
reasonable efforts to cause such registration statement to become effective and to maintain a current prospectus relating to those Class
A Ordinary Shares until the Warrants expire or are redeemed, as specified in the warrant agreement, dated October 14, 2021, that the Company entered
into with Continental, as warrant agent (the “Warrant Agreement”). If a registration statement covering