Company: CGCT
Filing Date: 2025-03-21
Form Type: S-1/A
Source: 0001104659-25-026623
Chunk: 320

Company: Cartesian Growth Corp III
Filing Date: 2025-03-21
Form: S-1/A
Chunk 320
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 shares. These amounts of ordinary income would not be eligible for the favorable tax
rates applicable to qualified dividend income or long-term capital gains. The U.S. Holder also will recognize an ordinary loss in
respect of the excess, if any, of its adjusted basis in its Class A ordinary shares over the fair market value of its Class A
ordinary shares at the end of its taxable year (but only to the extent of the net amount of previously included income as a result of
the mark-to-market election). The U.S. Holder’s basis in its Class A ordinary shares will be adjusted to reflect any
such income or loss amounts, and any further gain recognized on a sale or other taxable disposition of its Class A ordinary shares
will be treated as ordinary income. Under current law, a mark-to-market election may not be made with respect to warrants.

The mark-to-market election is available only
for stock that is regularly traded on a national securities exchange that is registered with the SEC, including Nasdaq (on which we intend
to list the Class A ordinary shares), or on a foreign exchange or market that the IRS determines has rules sufficient to ensure
that the market price represents a legitimate and sound fair market value. If made, a mark-to-market election would be effective for
the taxable year for which the election was made and for all subsequent taxable years unless the Class A ordinary shares ceased
to qualify as “marketable stock” for purposes of the PFIC rules or the IRS consented to the revocation of the election.
U.S. Holders are urged to consult their own tax advisors regarding the availability and tax consequences of a mark-to-market election
in respect to our Class A ordinary shares under their particular circumstances.

If we are a PFIC and, at any time, have a non-U.S. subsidiary
that is classified as a PFIC, U.S. Holders generally would be deemed to own a portion of the shares of such lower-tier PFIC, and
generally could incur liability for the deferred tax and interest charge described above if we receive a distribution from, or dispose
of all or part of our interest in, the lower-tier PFIC or the U.S. Holders otherwise were deemed to have disposed of an interest
in the lower-tier PFIC. Upon written request, we will endeavor to cause any lower-tier PFIC to provide to a U.S. Holder the
information that may be required to make or maintain a QEF election with respect to the lower-tier PFIC. There