UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 1.01. Entry into a Material Definitive Agreement.
On November 21, 2024, Compass Digital Acquisition Corp., a Cayman Islands exempted company (the “Company”), issued a promissory note (the “Note”) in the aggregate principal amount of up to $2,500,000 to HCG Opportunity, LLC, the Company’s sponsor (the “Sponsor”).
The Note was issued in connection with advances the Sponsor has previously made and may make in the future to the Company for working capital expenses. As of the date hereof, the Sponsor has advanced $415,000 to the Company under the Note.
The Note bears no interest and is repayable in full upon the earlier of (i) the date on which the Company consummates its initial business combination (the “Business Combination”) and (ii) the date of liquidation of the Company. If, prior to the Business Combination, the principal balance of this Note has not been paid in full, then, at the Sponsor’s option and subject to certain conditions, up to $1,375,000 of the unpaid principal amount of the Note may be converted into warrants of the Company (the “Conversion Warrant”) to purchase Class A ordinary shares, par value $0.0001 per share, of the Company at a conversion price of $1.50 per Conversion Warrant. The Conversion Warrants shall be identical to the warrants issued by the Company in a private placement upon consummation of its initial public offering. The Conversion Warrants and their underlying securities are entitled to the registration rights set forth in the Note.
The issuance of the Note was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended.
The foregoing description is qualified in its entirety by reference to the Note, a copy of which is attached as Exhibit 10.1 hereto and is incorporated herein by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation Under an Off-balance Sheet Arrangement of a Registrant.
The disclosure contained in Item 1.01 of this Current Report on Form 8-K is incorporated by reference in this Item 2.03.
Item 3.02. Unregistered Sales of Equity Securities.
The disclosure contained in Item 1.01 of this Current Report on Form 8-K is incorporated by reference in this Item 3.02.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |
| 10.1 | Promissory Note of the Company, dated November 21, 2024. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| COMPASS DIGITAL ACQUISITION CORP. | ||
| By: | /s/ Nick Geeza | |
| Name: | Nick Geeza | |
| Title: | Chief Financial Officer | |
Date: November 21, 2024