Company: CDAQF
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021994
Chunk: 12

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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)), will be restricted from seeking redemption rights with respect to more than an
aggregate of 15% of the Public Shares without the Company’s prior written consent.

The
Public Shareholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account ($11.58
per Public Share as of September 30, 2025, plus any pro rata interest earned on the funds held in the Trust Account and not previously
released to the Company to pay its tax obligations). There will be no redemption rights upon the completion of a Business Combination
with respect to the Warrants. These Class A Ordinary Shares were recorded at a redemption value and classified as temporary equity upon
the completion of the Initial Public Offering, in accordance with the Financial Accounting Standards Board (“FASB”) Accounting
Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity” (“ASC 480”).

If
a shareholder vote is not required and the Company does not decide to hold a shareholder vote for business or other legal reasons, the
Company will, pursuant to its Amended and Restated Charter, offer such redemption pursuant to the tender offer rules of the SEC, and
file tender offer documents containing substantially the same information as would be included in a proxy statement with the SEC prior
to completing a Business Combination.

The
Sponsors have agreed (i) to vote their Founder Shares and any Public Shares purchased during or after the Initial Public Offering in
favor of a Business Combination; (ii) not to propose an amendment to the Amended and Restated Charter with respect to the Company’s
pre-Business Combination activities prior to the closing of a Business Combination unless the Company provides dissenting public shareholders
with the opportunity to redeem their Public Shares in conjunction with any such amendment; (iii) not to redeem any shares (including
the Founder Shares) into the right to receive cash from the Trust Account in connection with a shareholder vote to approve a Business
Combination (or to sell any shares in a tender offer in connection with a Business Combination if the Company does not seek shareholder
approval in connection therewith) or a vote to amend the provisions of the Amended and Restated Charter relating to shareholders’
rights of pre-Business Combination activity; and (iv) that the Founder Shares shall not participate in any liquidating distributions
upon winding up if a Business Combination is not consummated. However, the Sponsors will be entitled to liquidating distributions from
the