Magnetar Financial Exits Compass Digital Acquisition Stake

TL;DR

**Magnetar Financial just dumped all their Compass Digital Acquisition stock.**

AI Summary

Magnetar Financial LLC, a Delaware-based investment firm, has filed an exit amendment (SC 13G/A) on January 25, 2024, indicating they no longer hold a reportable stake in Compass Digital Acquisition Corp. as of December 31, 2023. This means Magnetar Financial LLC, which previously held a significant position, has reduced its ownership to below the 5% threshold, effectively exiting their activist or influential position. For investors, this matters because a major institutional holder has divested, which could signal a loss of confidence or a strategic portfolio reallocation, potentially impacting the stock's future performance.

Why It Matters

A significant institutional investor, Magnetar Financial LLC, has sold off its entire reportable stake in Compass Digital Acquisition Corp., which could be interpreted as a bearish signal by the market. This might lead to increased selling pressure or a lack of institutional support for the stock.

Risk Assessment

Risk Level: medium — The exit of a major institutional investor like Magnetar Financial LLC can create uncertainty and potentially lead to downward pressure on the stock price.

Analyst Insight

Investors considering Compass Digital Acquisition Corp. should investigate the reasons behind Magnetar Financial LLC's exit and assess potential impacts on the stock's liquidity and institutional support before making investment decisions.

Key Numbers

• 0 — Sole Voting Power (Magnetar Financial LLC now holds zero sole voting power in Compass Digital Acquisition Corp. as of December 31, 2023.)

Key Players & Entities

• Magnetar Financial LLC (company) — the reporting person exiting their stake
• Compass Digital Acquisition Corp. (company) — the subject company whose shares were held
• David J. Snyderman (person) — a group member associated with the filing
• Magnetar Capital Partners LP (company) — a group member associated with the filing
• Supernova Management LLC (company) — a group member associated with the filing

Forward-Looking Statements

• Compass Digital Acquisition Corp. stock may experience increased selling pressure due to the exit of a major institutional investor. (Compass Digital Acquisition Corp.) — medium confidence, target: Q1 2024

FAQ

Filing Documents

• tm243910d15_sc13ga.htm (SC 13G/A) — 130KB
• tm243910d15_ex99-1.htm (EX-99.1) — 10KB
• tm243910d15_ex99-2.htm (EX-99.2) — 5KB
• 0001104659-24-006528.txt ( ) — 146KB

(a) Name of Issuer

Item 1(a) Name of Issuer. COMPASS DIGITAL ACQUISITION CORP. (the “Issuer”)

(b) Address of Issuer’s Principal Executive Offices

Item 1(b) Address of Issuer’s Principal Executive Offices. 195 US Hwy 50, Suite 208 Zephyr Cove, NV 75219

(a) Name of Person Filing

Item 2(a) Name of Person Filing. This statement is filed on behalf of each of the following person (collectively, the “Reporting Persons”): i) Magnetar Financial LLC (“Magnetar Financial”); ii) Magnetar Capital Partners LP (Magnetar Capital Partners”); iii) Supernova Management LLC (“Supernova Management”); and iv) David J. Snyderman (“Mr. Snyderman”). Magnetar Financial serves as the investment adviser to the Magnetar Funds, and as such, Magnetar Financial exercises voting and investment power over the Shares held for the Magnetar Funds’ accounts. Magnetar Capital Partners serves as the sole member and parent holding company of Magnetar Financial. Supernova Management is the general partner of Magnetar Capital Partners. The manager of Supernova Management is Mr. Snyderman.

(b) Address of Principal Business Office

Item 2(b) Address of Principal Business Office. The address of the principal business office of each of Magnetar Financial, Magnetar Capital Partners, Supernova Management, and Mr. Snyderman is 1603 Orrington Avenue, 13 th Floor, Evanston, Illinois 60201.

(c) Place of Organization

Item 2(c) Place of Organization. i) Magnetar Financial is a Delaware limited liability company; ii) Magnetar Capital Partners is a Delaware limited partnership; iii) Supernova Management is a Delaware limited liability company; and iv) Mr. Snyderman is a citizen of the United States of America.

(d) Title of Class of Securities

Item 2(d) Title of Class of Securities. Common Stock

(e) CUSIP Number

Item 2(e) CUSIP Number. G2476C107

Reporting Person

Item 3 Reporting Person. (e) An investment adviser in accordance with §240.13d–1(b)(1)(ii)(E) (g) A parent holding company or control person in accordance with §240.13d–1(b)(1)(ii)(G)

(a) Amount Beneficially Owned

Item 4(a) Amount Beneficially Owned: As of December 31, 2023, each of Magnetar Financial, Magnetar Capital Partners, Supernova Management and Mr. Snyderman held 0 Shares. The Shares held by the Magnetar Funds represent approximately 0.00% of the total number of Shares outstanding (calculated pursuant to Rule 13d-3(d)(1)(i)) of the outstanding shares of the Issuer).

(b) Percent of Class

Item 4(b) Percent of Class: (i) As of December 31, 2023, each of Reporting Persons were deemed to be the beneficial owner constituting approximately 0.00% of the total number of Shares outstanding (based upon the information provided by the Issuer in its Form 10-Q filed with the SEC on November 20, 2023, there were approximately 5,794,628 Shares outstanding as of November 20, 2023). Item 4(c) Number of Shares of which such person has: Magnetar Financial, Magnetar Capital Partners, Supernova Management, and Mr. Snyderman: (i) Sole power to vote or to direct the vote: 0 (ii) Shared power to vote or to direct the vote : 0 (iii) Sole power to dispose or to direct the disposition of: 0 (iv) Shared power to dispose or to direct the disposition of: 0

Ownership of Five Percent or Less of a Class

Item 5 Ownership of Five Percent or Less of a Class. If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than 5 percent of the class of securities, check the following .

Ownership of More Than Five Percent on Behalf of Another Person

Item 6 Ownership of More Than Five Percent on Behalf of Another Person. This Item 6 is not applicable. Item 7 Identification and Classification of the Subsidiary which Acquired the Security Being Reported On by the Parent Holding Company. This Item 7 is not applicable.

Identification and Classification of Members of the Group

Item 8 Identification and Classification of Members of the Group. This Item 8 is not applicable.

Notice of Dissolution of Group

Item 9 Notice of Dissolution of Group. This Item 9 is not applicable.

Certification

Item 10 Certification. By signing below the Reporting Persons certifies that, to the best of their knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect. SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Date: January 25, 2024 magnetar financial llc By: Magnetar Capital Partners LP, its Sole Member By: Supernova Management LLC, its General Partner By: /s/ Hayley A. Stein Name: Hayley A. Stein Title: Attorney-in-fact for David J. Snyderman, Manager of Supernova Management LLC Date: January 25, 2024 magnetar capital partners LP By: Supernova Management LLC, its General Partner By: /s/ Hayley A. Stein Name: Hayley A. Stein Title: Attorney-in-fact for David J. Snyderman, Manager of Supernova Management LLC Date: January 25, 2024 supernova management llc By: /s/ Hayley A. Stein Name: Hayley A. Stein Title: Attorney-in-fact for David J. Snyderman, Manager Date: January 25, 2024 DAVID J. SNYDERMAN By: /s/ Hayley A. Stein Name: Hayley A. Stein Title: Attorney-in-fact for David J. Snyderman EXHIBIT INDEX Exhibit No. Description 99.1 Joint Filing Agreement, dated as of January 25, 2024, among the Reporting Persons. 99.2 Power of Attorney, dated as of December 22, 2022 filed by the Reporting Persons on January 25, 2024.

View Full Filing

View this SC 13G/A filing on SEC EDGAR