Company: CGCT
Filing Date: 2025-03-21
Form Type: S-1/A
Source: 0001104659-25-026623
Chunk: 311

Company: Cartesian Growth Corp III
Filing Date: 2025-03-21
Form: S-1/A
Chunk 311
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 A ordinary shares will not be essentially equivalent to a dividend
if such redemption results in a “meaningful reduction” of the U.S. Holder’s proportionate interest in us. Whether
the redemption will result in a meaningful reduction in a U.S. Holder’s proportionate interest in us will depend on the particular
facts and circumstances. However, the IRS has indicated in a published ruling that even a small reduction in the proportionate interest
of a small minority shareholder in a publicly held corporation who exercises no control over corporate affairs may constitute such a
“meaningful reduction.” A U.S. Holder should consult with its own tax advisors as to the tax consequences of a redemption
of any Class A ordinary shares.

If none of the foregoing tests are satisfied,
then the redemption of any Class A ordinary shares will be treated as a corporate distribution and the tax effects will be as described
under “— Taxation of Distributions” above. After the application of those rules, any remaining tax basis
of the U.S. Holder in the redeemed Class A ordinary shares will be added to the U.S. Holder’s adjusted tax basis
in its remaining shares, or, if it has none, to the U.S. Holder’s adjusted tax basis in its warrants or possibly in other
shares constructively owned by it.

U.S. Holders who actually or constructively
own five percent (or if our Class A ordinary shares are not then publicly traded, U.S. Holders who actually or constructively
own one percent) or more of our shares (by vote or value) may be subject to special reporting requirements with respect to a redemption
of Class A ordinary shares, and such holders are urged to consult with their own tax advisors with respect to their reporting requirements.

Exercise, Lapse or Redemption of a Warrant

A U.S. Holder generally will not recognize
gain or loss upon the acquisition of a Class A ordinary share upon the exercise of a warrant for cash. A U.S. Holder’s
tax basis in a Class A ordinary share received upon exercise of the warrant generally will equal the sum of the U.S. Holder’s
initial investment in the warrant (that is, the portion of the U.S. Holder’s purchase price for the units that is allocated
to the warrant, as described above under “— Allocation of Purchase Price and Characterization of a Unit”)
and the exercise price. It is unclear whether a U.S. Holder’s holding period for the Class A ordinary share received
will commence on the date