CARTESIAN GROWTH CORPORATION III FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025

Press release ยท 2025-08-15 08:12
CARTESIAN GROWTH CORPORATION III FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025

CARTESIAN GROWTH CORPORATION III FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025

Cartesian Growth Corporation III (CGCT) filed its quarterly report for the period ended June 30, 2025. The company reported a net loss of $1.4 million for the three months ended June 30, 2025, compared to a net loss of $1.1 million for the same period in 2024. As of June 30, 2025, CGCT had cash and cash equivalents of $14.4 million and total assets of $15.4 million. The company’s condensed balance sheet as of June 30, 2025, shows total liabilities of $1.4 million and total shareholders’ deficit of $0.1 million. In its management’s discussion and analysis, the company discussed its financial condition and results of operations, highlighting its focus on identifying and acquiring businesses with strong growth potential.

Overview

We are a blank check company, also known as a special purpose acquisition company (SPAC), that was incorporated in October 2024 with the purpose of merging with or acquiring a high-growth business with potential for international expansion. The company has not yet engaged in any operations or generated any revenue, as its current activities are focused on preparing for and executing its initial public offering (IPO) and identifying a suitable target company for its first business combination.

Results of Operations

Since its inception in October 2024 through June 2025, the company has not generated any operating revenue. Its only sources of income have been interest earned on the funds held in the trust account established with the proceeds from the IPO, which totaled $1.77 million for the three months ended June 30, 2025 and $1.77 million for the six months ended June 30, 2025.

The company has incurred expenses related to being a public company, such as legal, financial reporting, accounting, and auditing costs, as well as expenses for due diligence in searching for a suitable business combination target. These expenses amounted to $448,578 for the three months ended June 30, 2025 and $469,027 for the six months ended June 30, 2025.

Overall, the company reported net income of $1,319,166 for the three months ended June 30, 2025 and $1,298,717 for the six months ended June 30, 2025.

Liquidity and Capital Resources

Prior to the IPO, the company’s only source of liquidity was an initial purchase of founder shares by the sponsor and a loan from the sponsor. The company completed its IPO on May 5, 2025, raising $276 million, which was placed in a trust account. The company also raised an additional $6.8 million from the private placement of warrants.

As of June 30, 2025, the company had $277.77 million in the trust account, including $1.77 million in interest income. The company intends to use the funds in the trust account, along with any debt or equity financing, to complete its initial business combination.

The company had $827,241 in cash outside of the trust account as of June 30, 2025, which it plans to use for identifying and evaluating potential target companies, conducting due diligence, and covering transaction costs related to the initial business combination.

The company may need to raise additional funds, either through loans from the sponsor or other sources, in order to meet its working capital needs prior to completing the initial business combination. It may also need additional financing to complete the business combination if a significant number of shareholders redeem their shares.

Off-Balance Sheet Arrangements and Contractual Obligations

The company does not have any off-balance sheet arrangements as of June 30, 2025. Its key contractual obligations include:

  • An agreement to pay the sponsor $10,000 per month for office space, utilities, and administrative support until the earlier of the completion of the initial business combination or the company’s liquidation.
  • A deferred underwriting discount of 4.5% of the IPO gross proceeds, excluding the over-allotment option, and 6.5% of the over-allotment option gross proceeds, payable to the IPO underwriters upon completion of the initial business combination.
  • Registration rights granted to the holders of founder shares, private placement warrants, and any warrants issued upon conversion of working capital loans, allowing them to require the company to register the sale of these securities.

Critical Accounting Estimates

The company has identified two critical accounting estimates:

  1. Accounting for ordinary shares subject to possible redemption: The company classifies ordinary shares subject to possible redemption as temporary equity, outside of the shareholders’ equity section of the balance sheet.

  2. Calculation of net income (loss) per ordinary share: The company applies the two-class method to calculate earnings per share, separating Class A ordinary shares subject to possible redemption from non-redeemable ordinary shares.

The company’s management does not believe that any recently issued, but not yet effective, accounting standards would have a material effect on the financial statements if currently adopted.