Company: CGCT
Filing Date: 2025-03-21
Form Type: S-1/A
Source: 0001104659-25-026623
Chunk: 313

Company: Cartesian Growth Corp III
Filing Date: 2025-03-21
Form: S-1/A
Chunk 313
---
 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.

<div align='center'>160</div>

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 — Public Warrants” or if we purchase warrants in an open market transaction,
such redemption or purchase generally will be treated as a taxable disposition to the U.S. Holder, taxed as described above under
“— Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Class A Ordinary Shares and Warrants.”

Possible Constructive Distributions

The terms of each warrant provide for an adjustment
to the number of Class A ordinary shares for which the warrant may be exercised or to the exercise price of the warrant in certain
events, as discussed in the section of this prospectus entitled “Description of Securities — Warrants — Public Warrants.” An adjustment which has the effect of preventing dilution generally is not taxable. The U.S. Holders of the
warrants would, however, be treated as receiving a constructive distribution from us if, for example, the adjustment increases such U.S. Holders’
proportionate interest in our assets or earnings and profits (e.g., through an increase in the number of Class A ordinary shares
that would be obtained upon exercise or through a decrease in the exercise price of the warrants), which adjustment may be made as a
result of a distribution of cash or other property to the holders of our Class A ordinary shares. Such constructive distribution
to