Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 1

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 1
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 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.

A
total of $200,000,000, comprised of $196,000 of the proceeds from the Initial Public Offering and $4,000,000 of the proceeds from the
Private Placement, was placed in the Trust Account maintained by Continental, acting as trustee.

Our
Legacy Sponsor was Compass Digital SPAC LLC, a Delaware limited liability company. On August 31, 2023, upon the consummation of the Sponsor
Handover (as described below), HCG Opportunity, LLC, a Delaware limited liability company,
became our new sponsor.

It
is the job of our Sponsor and Management Team to complete our initial Business Combination. Our Management Team is led by (i) Daniel
Hennessy, the Chairman of our Board of Directors, (ii) Thomas Hennessy, our Chief Executive
Officer and a director and (iii) Nick Geeza, our Chief Financial Officer, who have many years of experience in
effecting successful Business Combination agreements. Our Management Team has a deep understanding of the intricacies of SPAC and Business
Combination agreements and have successfully led multiple SPACs from inception to completion. Our Management Team has cultivated extensive
networks within the financial, legal, and regulatory enabling us to identify acquisition targets, negotiate favorable terms, and expedite
the due diligence process. The team leverages previous experience to implement risk management strategies and adhere to the highest standards
of corporate governance and regulatory compliance.

1

We
must complete our initial Business Combination by April 19, 2025, the end of our Combination Period, which is 42 months from the closing
of our Initial Public Offering, unless our Combination Period is further extended. If our initial Business Combination is not consummated
by the end of our Combination Period, then, unless our Board of Directors shall otherwise determine, our existence will terminate, and
we will distribute all amounts in the Trust Account.

Sponsor
Handover

On
August 30, 2023, our Sponsors entered into the Sponsor Purchase Agreement, and on August 31, 2023, our Sponsors consummated the Sponsor
Handover. Pursuant to the terms of the Sponsor Purchase Agreement, at the Sponsor Handover: (i) the Legacy Sponsor transferred 3,093,036