Company: CGCT
Filing Date: 2025-01-29
Form Type: S-1
Source: 0001104659-25-006780
Chunk: 315

Company: Cartesian Growth Corp III
Filing Date: 2025-01-29
Form: S-1
Chunk 315
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 include the period during which the U.S. Holder held the warrants. If the cashless exercise were treated
as a recapitalization, the holding period of the Class A ordinary shares received would include the holding period of the warrants.

It is also possible that a cashless exercise
could be treated in part as a taxable exchange in which gain or loss would be recognized. In such event, a U.S. Holder could be
deemed to have surrendered a number of warrants equal to the number of Class A ordinary shares having an aggregate value equal to
the exercise price for the total number of warrants to be exercised. In such case, subject to the PFIC rules discussed below, the
U.S. Holder would recognize capital gain or loss with respect to the warrants deemed surrendered in an amount equal to the difference
between the fair market value of the Class A ordinary shares that would have been received in a regular exercise of the warrants
deemed surrendered and the U.S. Holder’s tax basis in the warrants deemed surrendered. In this case, a U.S. Holder’s
aggregate tax basis in the Class A ordinary shares received would equal the sum of the U.S. Holder’s initial investment
in the warrants deemed exercised (i.e., the portion of the U.S. Holder’s purchase price for the units that is allocated to
the warrants, as described above under “Allocation of Purchase Price and Characterization of a Unit”) and the aggregate
exercise price of such warrants. It is unclear whether a U.S. Holder’s holding period for the Class A ordinary shares
would commence on the date of exercise of the warrants or the day following the date of exercise of the warrants; in either case,
the holding period will not include the period during which the U.S. Holder held the warrants.

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Due to the absence of authority on the United States
federal income tax treatment of a cashless exercise, including when a U.S. Holder’s holding period would commence with respect
to the Class A ordinary share received, there can be no assurance regarding which, if any, of the alternative tax consequences and
holding periods described above would be adopted by the IRS or a court of law. Accordingly, U.S. Holders should consult their tax
advisors regarding the tax consequences of a cashless exercise.

Subject to the PFIC rules described below,
if we redeem warrants for cash pursuant to the redemption provisions described in the section of this prospectus entitled “Description of Securities — Warrants