Company: CGCT
Filing Date: 2025-01-29
Form Type: S-1
Source: 0001104659-25-006780
Chunk: 320

Company: Cartesian Growth Corp III
Filing Date: 2025-01-29
Form: S-1
Chunk 320
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 to hold) Class A ordinary shares, then notwithstanding such QEF election, the excess distribution rules discussed above,
adjusted to take into account the current income inclusions resulting from the QEF election, will continue to apply with respect to such
U.S. Holder’s Class A ordinary shares, unless the U.S. Holder makes a purging election under the PFIC rules. Under
one type of purging election, the U.S. Holder will be deemed to have sold such Class A ordinary shares at their fair market
value and any gain recognized on such deemed sale will be treated as an excess distribution, as described above. As a result of such
purging election, the U.S. Holder will have additional basis (to the extent of any gain recognized on the deemed sale) and, solely
for purposes of the PFIC rules, a new holding period in the Class A ordinary shares.

Under current law, a U.S. Holder may not
make a QEF election with respect to its warrants to acquire our Class A ordinary shares. As a result, if a U.S. Holder sells
or otherwise disposes of such warrants (other than upon exercise of such warrants) and we were a PFIC at any time during the U.S. Holder’s
holding period of such warrants, any gain recognized generally will be treated as an excess distribution, taxed as described above. If
a U.S. Holder that exercises such warrants properly makes and maintains a QEF election with respect to the newly acquired Class A
ordinary shares (or has previously made a QEF election with respect to our Class A ordinary shares), the QEF election will apply
to the newly acquired Class A ordinary shares. Notwithstanding such QEF election, the excess distribution rules discussed above,
adjusted to take into account the current income inclusions resulting from the QEF election, will continue to apply with respect to such
newly acquired Class A ordinary shares (which, while not entirely clear, generally will be deemed to have a holding period for purposes
of the PFIC rules that includes the period the U.S. Holder held the warrants), unless the U.S. Holder makes a purging
election under the PFIC rules. U.S. Holders are urged to consult their tax advisors as to the application of the rules governing
purging elections to their particular circumstances.

The QEF election is made on a shareholder-by-shareholder
basis and, once made, can be revoked only with the consent of the IRS. A U.S. Holder generally makes