Company: CGCT
Filing Date: 2025-03-05
Form Type: S-1/A
Source: 0001104659-25-020969
Chunk: 309

Company: Cartesian Growth Corp III
Filing Date: 2025-03-05
Form: S-1/A
Chunk 309
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 promulgated with a retroactive
effective date (the “Proposed PFIC Option Regulations”). Each prospective investor is urged to consult its tax advisors regarding
the possible application of the Proposed PFIC Option Regulations to an investment in the warrants. Solely for discussion purposes, the
following discussion assumes that the Proposed PFIC Option Regulations will apply to the warrants.

Although our PFIC status is determined annually,
an initial determination that our company is a PFIC generally will apply for subsequent years to a U.S. Holder who held (or
was deemed to hold) Class A ordinary shares or warrants while we were a PFIC, whether or not we meet the test for PFIC status in
those subsequent years. If we are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding
period of a U.S. Holder of our Class A ordinary shares or warrants and, in the case of our Class A ordinary shares, the
U.S. Holder did not make either a timely mark-to-market election or a qualified electing fund (“QEF”) election (as discussed
below) for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) Class A ordinary shares,
as described below, such U.S. Holder generally will be subject to special rules with respect to (i) any gain recognized
by the U.S. Holder on the sale or other disposition of its Class A ordinary shares or warrants (which may include gain realized
by reason of transfers of Class A ordinary shares or warrants that would otherwise qualify as non-recognition transactions for U.S. federal
income tax purposes) and (ii) any “excess distribution” made to the U.S. Holder (generally, any distributions to
such U.S. Holder during a taxable year of the U.S. Holder that are greater than 125% of the average annual distributions received
by such U.S. Holder in respect of the Class A ordinary shares during the three preceding taxable years of such U.S. Holder
or, if shorter, the portion of such U.S. Holder’s holding period for the Class A ordinary shares that preceded the taxable
year of the distribution) (together the “excess distribution rules”).

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Under these excess distribution rules:

| · | the                                                                                        
 U.S. Holder’s gain or excess distribution will be allocated ratably over the U.S. Holder’s 
 holding period for