Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 519

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 2
Chunk 519
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 least 80% of the balance in the Trust Account (less any taxes payable
on interest earned on the Trust Account) at the time of the signing a definitive agreement to enter a Business Combination. We will
only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the outstanding voting
securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register
as an investment company under the Investment Company Act. There is no assurance that we will be able to successfully effect a
Business Combination.

We
will provide the Public Shareholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of a
Business Combination either (i) in connection with a shareholder meeting called to approve the Business Combination or (ii) by means
of a tender offer. In connection with a proposed Business Combination, we may seek shareholder approval of a Business Combination at
a meeting called for such purpose at which Public Shareholders may seek to redeem their Public Shares without voting, and if they do
vote, irrespective of whether they vote for or against a Business Combination. We will proceed with a Business Combination only if we
have net tangible assets of at least $5,000,001 either immediately prior to or upon such closing of a Business Combination and, if we
seek shareholder approval, a majority of the outstanding shares voted are voted in favor of the Business Combination.

28

If
we seek shareholder approval of a Business Combination and do not conduct redemptions pursuant to the tender offer rules, our Amended
and Restated Charter provides that, a Public Shareholder, together with any affiliate of such Public Shareholder or any other person
with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Exchange Act), will be
restricted from seeking redemption rights with respect to more than an aggregate of 15% of the Public Shares without our prior written
consent.

In
connection with such vote, the Public Shareholders will be entitled to redeem their Public Shares for a pro rata portion of the amount
then in the Trust Account ($11.14 per share as of December 31, 2024, net of taxes paid and payable). There will be no redemption rights
upon the completion of a Business Combination with respect to Warrants. These Class A Ordinary Shares have been recorded at a redemption
value and classified as temporary equity upon the completion of the Initial