Company: CGCT
Filing Date: 2025-03-21
Form Type: S-1/A
Source: 0001104659-25-026623
Chunk: 309

Company: Cartesian Growth Corp III
Filing Date: 2025-03-21
Form: S-1/A
Chunk 309
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 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 “Description of Securities — Ordinary Shares” or if we
purchase a U.S. Holder’s Class A ordinary shares in an open market transaction (such open market purchase of Class A
ordinary shares by us is referred to as a “redemption” for the remainder of this discussion), the treatment of the transaction
for United States federal income tax purposes will depend on whether the redemption qualifies as a sale of the Class A ordinary
shares under Section 302 of the Code. If the redemption qualifies as a sale of Class A ordinary shares, the U.S. Holder
will be treated as described under “— Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Class A Ordinary Shares and Warrants” above. If the redemption does not qualify as a sale of Class A ordinary shares, the U.S. Holder
will be treated as receiving a corporate distribution with the tax consequences described above under “— Taxation of Distributions.” Whether a redemption qualifies for sale treatment will depend largely on the total number of our shares
treated as held by the U.S. Holder (including any shares constructively owned by the U.S. Holder per the constructive ownership
rules described in the following paragraph, including as a result of owning warrants) relative to all of our shares outstanding
both before and after