Company: CGCT
Filing Date: 2025-03-05
Form Type: S-1/A
Source: 0001104659-25-020969
Chunk: 303

Company: Cartesian Growth Corp III
Filing Date: 2025-03-05
Form: S-1/A
Chunk 303
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 as a sale of the Class A ordinary
shares under Section 302 of the Code. If the redemption qualifies as a sale of Class A ordinary shares, the U.S. Holder
will be treated as described under “— Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Class A Ordinary Shares and Warrants” above. If the redemption does not qualify as a sale of Class A ordinary shares, the U.S. Holder
will be treated as receiving a corporate distribution with the tax consequences described above under “— Taxation of Distributions.” Whether a redemption qualifies for sale treatment will depend largely on the total number of our shares
treated as held by the U.S. Holder (including any shares constructively owned by the U.S. Holder per the constructive ownership
rules described in the following paragraph, including as a result of owning warrants) relative to all of our shares outstanding
both before and after such redemption. A redemption of Class A ordinary shares generally will be treated as a sale of the Class A
ordinary shares (rather than as a corporate distribution) if such redemption (i) is “substantially disproportionate”
with respect to the U.S. Holder, (ii) results in a “complete termination” of the U.S. Holder’s interest
in us or (iii) is “not essentially equivalent to a dividend” with respect to the U.S. Holder. These tests are explained
more fully below.

<div align='center'>159</div>

In determining whether any of the foregoing tests
are satisfied, a U.S. Holder takes into account not only our shares actually owned by the U.S. Holder, but also our shares
that are constructively owned by such U.S. Holder. A U.S. Holder may constructively own, in addition to shares owned directly,
shares owned by certain related individuals and entities in which the U.S. Holder has an interest or that have an interest in such
U.S. Holder, as well as any shares the U.S. Holder has a right to acquire by exercise of an option, which generally would include
Class A ordinary shares which could be acquired by such U.S. Holder pursuant to the exercise of the warrants. In order to meet
the substantially disproportionate test, the percentage of our issued and outstanding voting shares actually and constructively owned
by the U.S. Holder immediately following the redemption of Class A ordinary shares must, among other requirements, be less
than 80% of the percentage of our issued and outstanding voting shares