Company: CGCT
Filing Date: 2025-01-29
Form Type: S-1
Source: 0001104659-25-006780
Chunk: 311

Company: Cartesian Growth Corp III
Filing Date: 2025-01-29
Form: S-1
Chunk 311
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 realized by a non-corporate
U.S. Holder may be taxed at reduced rates of taxation. It is unclear, however, whether certain redemption rights described in this
prospectus may suspend the running of the applicable holding period of the Class A ordinary shares for this purpose. If the running
of the holding period for the Class A ordinary shares is suspended, then non-corporate U.S. Holders may not be able to satisfy
the one-year holding period requirement for long-term capital gain treatment, in which case any gain on a sale or other taxable disposition
of the Class A ordinary shares would be subject to short-term capital gain treatment and would be taxed at regular ordinary income
tax rates. The deductibility of capital losses is subject to certain limitations.

The amount of gain or loss recognized by a U.S. Holder
on a sale or other taxable disposition generally will be equal to the difference between (i) the sum of the amount of cash and the
fair market value of any property received in such disposition (or, if the Class A ordinary shares or warrants are held as part
of units at the time of the disposition, the portion of the amount realized on such disposition that is allocated to the Class A
ordinary shares or warrants based upon the then relative fair market values of the Class A ordinary shares and the warrants comprising
the units determined by the allocation principles described above under “— Allocation of Purchase Price and Characterization of a Unit”) and (ii) the U.S. Holder’s adjusted tax basis in its Class A ordinary shares or warrants so
disposed of. A U.S. Holder’s adjusted tax basis in its Class A ordinary shares or warrants generally will equal the U.S. Holder’s
acquisition cost (that is, the portion of the purchase price of a unit allocated to a Class A ordinary share or one-half of one
warrant, as described above under “— Allocation of Purchase Price and Characterization of a Unit”) reduced,
in the case of a Class A ordinary share, by any prior distributions treated as a return of capital. See “— Exercise, Lapse or Redemption of a Warrant” below for a discussion regarding a U.S. Holder’s tax basis in the Class A
ordinary share acquired pursuant to the exercise of a warrant.

Redemption of Class A Ordinary Shares

Subject to the PFIC rules discussed below,
in the event that a U.S. Holder’s Class A ordinary shares are redeemed pursuant to the redemption provisions described
in the section of this prospectus entitled