Company: CGCT
Filing Date: 2025-03-05
Form Type: S-1/A
Source: 0001104659-25-020969
Chunk: 126

Company: Cartesian Growth Corp III
Filing Date: 2025-03-05
Form: S-1/A
Chunk 126
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 our Class A
ordinary shares declines after we complete our initial business combination. Our initial shareholders may therefore be economically incentivized
to complete an initial business combination with a riskier, weaker-performing or less-established target business than would
be the case if our initial shareholders had paid the same per share price for the founder shares as our public shareholders paid for
their public shares in this offering.

This dilution would increase to the extent that
the anti-dilution provisions of the founder shares result in the issuance of Class A ordinary shares on a greater than one-to-one basis
upon conversion of the founder shares at the time of our initial business combination and would become exacerbated to the extent that
public shareholders seek redemptions from the trust for their public shares. In addition, because of the anti-dilution protection
in the founder shares, any equity or equity-linked securities issued in connection with our initial business combination would be
disproportionately dilutive to our Class A ordinary shares.

The value of the founder shares following completion of our initial business combination is likely to be substantially higher than the nominal price paid for them, even if the trading price of our ordinary shares at such time is substantially less than $10.00 per public share.

Upon the closing of this offering, our initial
shareholders will have invested in us an aggregate of $4,025,000, comprised of the $25,000 purchase price for the founder shares (or
approximately $0.004 per share) and the $4,000,000 purchase price for the private placement warrants (or $1.00 per warrant, and excluding
private placement warrants to be acquired by Cantor). Assuming a trading price of $10.00 per public share upon consummation of our initial
business combination, the 5,000,000 founder shares would have an aggregate implied value of $50,000,000. Even if the trading price of
our ordinary shares was as low as approximately $0.81 per share, and the private placement warrants are worthless, the value of the founder
shares would be approximately equal to our initial shareholders’ aggregate initial investment in us. As a result, our initial shareholders
are likely to be able to make a substantial profit on their investment in us at a time when our public shares have lost significant value.
Accordingly, our management team or our initial shareholders may be more willing to pursue a business combination with a riskier or less-established
target business than would be the case if our initial shareholders had