Company: CGCT
Filing Date: 2025-03-05
Form Type: S-1/A
Source: 0001104659-25-020969
Chunk: 299

Company: Cartesian Growth Corp III
Filing Date: 2025-03-05
Form: S-1/A
Chunk 299
---
 INVESTOR IN OUR SECURITIES IS URGED TO CONSULT ITS OWN TAX ADVISOR WITH RESPECT TO THE PARTICULAR TAX CONSEQUENCES TO SUCH
INVESTOR OF THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR SECURITIES, INCLUDING THE APPLICABILITY AND EFFECT OF ANY UNITED STATES
FEDERAL NON-INCOME, STATE, LOCAL, AND NON-UNITED STATES TAX LAWS.

Allocation of Purchase Price and Characterization of a Unit

No statutory, administrative or judicial authority
directly addresses the treatment of a unit or any instrument similar to a unit for United States federal income tax purposes, and
therefore, that treatment is not entirely clear. The acquisition of a unit should be treated for United States federal income tax
purposes as the acquisition of one Class A ordinary share and one-half of one warrant, and we intend to treat the acquisition of
a unit in such manner. By purchasing a unit, you agree to adopt such treatment for United States federal income tax purposes. For
United States federal income tax purposes, each holder of a unit must allocate the purchase price paid by such holder for such unit
between the one Class A ordinary share and the one-half of one warrant based on the relative fair market value of each at the time
of issuance. Under U.S. federal income tax law, each investor must make his or her own determination of such value based on all
the relevant facts and circumstances. Therefore, we strongly urge each investor to consult his or her tax advisor regarding the determination
of value for these purposes. The price allocated to each Class A ordinary share and the one-half of one warrant should be the holder’s
initial tax basis in such share or warrant. Any disposition of a unit should be treated for United States federal income tax purposes
as a disposition of the Class A ordinary share and one-half of one warrant comprising the unit, and the amount realized on the disposition
should be allocated between the Class A ordinary share and one-half of one warrant based on their respective fair market values
(as determined by each such unit holder based on all the relevant facts and circumstances) at the time of disposition. The separation
of the Class A ordinary share and the one-half of one warrant comprising a unit and the combination of two halves of one warrant
into a single warrant should not be a taxable event for United States federal income tax purposes.

The foregoing treatments of the units, Class A
ordinary shares and warrants and a holder’s purchase price allocation are not binding