Company: CDAQF
Filing Date: 2025-03-25
Form Type: 10-K
Source: 0001641172-25-000421
Chunk: 28

Company: Compass Digital Acquisition Corp.
Filing Date: 2025-03-25
Form: 10-K
Item: Item 1
Chunk 28
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 in the Initial Public Offering without our prior
consent, we believe we are limiting the ability of a small group of Public Shareholders to unreasonably attempt to block our ability
to complete our initial Business Combination, particularly in connection with a Business Combination with a target that requires as a
closing condition that we have a minimum net worth or a certain amount of cash.

15

However,
our Public Shareholders’ ability to vote all of their Public Shares (including Excess Shares) for or against our initial Business
Combination is not restricted.

Delivering
Share Certificates in Connection with a Tender Offer or Redemption Rights

There
is a nominal cost associated with the above-referenced process and the act of certificating the Public Shares or delivering them through
the DWAC system. The transfer agent will typically charge the broker submitting or tendering shares a nominal fee and it would be up
to the broker whether or not to pass this cost on to the redeeming holder. However, this fee would be incurred regardless of whether
or not we require holders seeking to exercise redemption rights to submit or tender their Public Shares. The need to deliver Public Shares
is a requirement of exercising redemption rights regardless of the timing of when such delivery must be effectuated.

Any
request to redeem such Public Shares, once made, may be withdrawn at any time up to the date set forth in the proxy materials or tender
offer documents, as applicable. Furthermore, if a holder of a Public Share delivered its certificate in connection with an election of
redemption rights and subsequently decides prior to the applicable date not to elect to exercise such rights, such holder may simply
request that the transfer agent return the certificate (physically or electronically). It is anticipated that the funds to be distributed
to our Public Shareholders electing to redeem their Public Shares will be distributed promptly after the completion of our initial Business
Combination.

If
our initial Business Combination is not approved or completed for any reason, then our Public Shareholders who elected to exercise their
redemption rights would not be entitled to redeem their Public Shares for the applicable pro rata share of the Trust Account. In such
case, we will promptly return any certificates delivered by public holders who elected to redeem their Public Shares.

If
the EEW Business Combination is not completed, we may continue to try to complete a Business Combination with a different target until
the end of our Combination Period.

Redemption
of Public Shares and Liquidation If No Initial Business Combination

Our
Am