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Compass Digital Acquisition Corp. (CDAUF0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing details the company's financial position, including a working capital deficit of $5,479,910 and cash of $33,544 as of September 30, 2024. The company has drawn $1,250,000 from the Polar Capital Investment, which is valued at $227,273.
The company reported a net loss of $4,568,210 for the three months ended September 30, 2024, primarily due to operating expenses, non-redemption expense, and changes in the fair value of derivative warrant liabilities. Interest earned on cash held in the Trust Account partially offset these losses.
The filing outlines the company's efforts to complete a business combination, including entering into a Business Combination Agreement with EEW Renewables Ltd. and other parties on September 5, 2024. The agreement involves a merger and share exchange that will result in Compass Digital Acquisition Corp. becoming a wholly-owned subsidiary of a new public company, EEW Renewables Corp.
The company has extended its combination period to December 19, 2024, with the potential for four additional monthly extensions. This extension was approved at an extraordinary general meeting held on July 18, 2024.
The filing also discusses the company's liquidity concerns, noting that it may not have sufficient working capital to meet its needs through the consummation of a business combination. The company has until December 19, 2024, or April 19, 2025, if all extensions are used, to complete a business combination.
Compass Digital Acquisition Corp.'s securities were suspended from trading on Nasdaq on October 22, 2024, due to the company not completing a business combination within 36 months of its initial public offering registration statement becoming effective. The company's securities are now quoted on an over-the-counter market.
The company remains a reporting entity under the Exchange Act and continues to disclose financial and operational information. The filing highlights the risks associated with the company's current financial position and its ability to complete a business combination.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the CDAUF quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.