Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
As previously reported, on
June 26, 2026, Cartesian Growth Corporation IV, a Cayman Islands exempted company (the “Company”), consummated its initial
public offering (the “Offering”) of 27,500,000 units (the “Units”), including the issuance of 2,500,000 Units
as a result of the underwriters’ partial exercise of their over-allotment option. Each Unit consists of one Class A ordinary share,
par value $0.0001 per share (“Class A Ordinary Shares”), and one-third of one redeemable warrant (each, a “Warrant”),
each whole Warrant entitling the holder thereof to purchase one Class A Ordinary Share at an exercise price of $11.50 per share, subject
to adjustment, pursuant to the Company’s registration statement on Form S-1 (File No. 333-296614). The Units were sold at an offering
price of $10.00 per Unit, generating gross proceeds to the Company of $275,000,000.
As previously reported, on June 26, 2026, simultaneously with the consummation of the Offering,
the Company consummated the private placement of 937,500 warrants to CGC IV Sponsor LLC and 1,562,500 warrants to Cantor Fitzgerald &
Co. (collectively, the “Private Placement Warrants”) at a price of $2.00 per Private Placement Warrant, generating gross
proceeds to the Company of $5,000,000 (the “Private Placement”).
A total of $275,000,000 ($10.00
per Unit) of the net proceeds from the Offering and the Private Placement, which amount includes $11,500,000 in deferred underwriting
commissions, was placed in a trust account established for the benefit of the Company’s public shareholders, with Continental Stock
Transfer & Trust Company acting as trustee.
An audited balance sheet as
of June 26, 2026 reflecting receipt of the proceeds from the Offering and the Private Placement has been issued by the Company and
is filed as Exhibit 99.1 to this Current Report on Form 8-K.
(d) Exhibits.
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Exhibit
99.1
CARTESIAN
GROWTH CORPORATION IV
INDEX
TO FINANCIAL STATEMENT
| |
|
Page |
| Financial
Statement of Cartesian Growth Corporation IV: |
|
|
| Report
of Independent Registered Public Accounting Firm (PCAOB ID Number 199) |
|
F-2 |
| Balance
Sheet as of June 26, 2026 |
|
F-3 |
| Notes
to Financial Statement |
|
F-4 |
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
the Shareholders and Board of Directors of
Cartesian
Growth Corporation IV
Opinion
on the Financial Statement
We
have audited the accompanying balance sheet of Cartesian Growth Corporation IV (the “Company”) as of June 26, 2026, and the
related notes (collectively referred to as the “financial statement”). In our opinion, the financial statement presents fairly,
in all material respects, the financial position of the Company as of June 26, 2026, in conformity with accounting principles generally
accepted in the United States of America.
Basis
for Opinion
This
financial statement is the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s
financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit,
we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion
on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our
audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides
a reasonable basis for our opinion.
/s/
CBIZ CPAs P.C.
We
have served as the Company’s auditor since 2026.
Houston,
Texas
July 7, 2026
CARTESIAN
GROWTH CORPORATION IV
BALANCE SHEET
JUNE
26, 2026
| Assets | |
| |
| Current assets | |
| |
| Cash | |
$ | 503,633 | |
| Prepaid expenses | |
| 19,800 | |
| Total current assets | |
| 523,433 | |
| Cash held in Trust Account | |
| 275,000,000 | |
| Total Assets | |
$ | 275,523,433 | |
| | |
| | |
| Liabilities, Class A Ordinary Shares Subject to Possible Redemption, and Shareholders’ Deficit | |
| | |
| Current liabilities | |
| | |
| Accrued offering costs | |
$ | 278,950 | |
| Accrued expenses | |
| 9,650 | |
| Over-allotment option liability | |
| 65,600 | |
| Total current liabilities | |
| 354,200 | |
| Sponsor loan | |
| 750,000 | |
| Deferred underwriting fee | |
| 11,500,000 | |
| Total Liabilities | |
| 12,604,200 | |
| | |
| | |
| Commitments and Contingencies (Note 6) | |
| | |
| Class A ordinary shares subject to possible redemption, $0.0001 par value; 27,500,000 shares at redemption value of $10.00 per share | |
| 275,000,000 | |
| | |
| | |
| Shareholders’ Deficit | |
| | |
| Preference shares, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding | |
| — | |
| Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; none issued or outstanding (excluding 27,500,000 shares subject to possible redemption) | |
| — | |
| Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 7,187,500 shares issued and outstanding(1) | |
| 719 | |
| Additional paid-in capital | |
| — | |
| Accumulated deficit | |
| (12,081,486 | ) |
| Total Shareholders’ Deficit | |
| (12,080,767 | ) |
| Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption, and Shareholders’ Deficit | |
$ | 275,523,433 | |
| (1) |
On
June 26, 2026, the underwriters partially exercised their over-allotment option in the amount of 2,500,000 Units and the unexercised
balance of 1,250,000 Units remains open. As a result of the partial exercise of the over-allotment option by the underwriters, 625,000
founder shares are no longer subject to surrender and 312,500 founder shares remain subject to surrender (Note 5). |
The
accompanying notes are an integral part of the financial statement.
CARTESIAN
GROWTH CORPORATION IV
NOTES TO FINANCIAL STATEMENT
JUNE 26, 2026
Note 1 — Organization
and Business Operations
Cartesian
Growth Corporation IV (the “Company”) is a blank check company incorporated as a Cayman Islands exempted corporation
on February 20, 2026. The Company was incorporated for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition,
share purchase, reorganization or similar business combination with one or more businesses or entities (the “Business Combination”).
The Company has not selected any specific Business Combination target, and the Company has not, nor has anyone on its behalf, engaged
in any substantive discussions, directly or indirectly, with any Business Combination target with respect to an initial Business Combination
with the Company.
As
of June 26, 2026, the Company has not commenced any operations. All activity for the period from February 20, 2026 (inception) through
June 26, 2026 relates to the Company’s formation and the initial public offering (the “Initial Public Offering”), which
is described below. The Company will not generate any operating revenues until after the completion of its initial Business Combination,
at the earliest. The Company will generate non-operating income in the form of interest income on cash and cash equivalents from the
proceeds derived from the Initial Public Offering. The Company has selected December 31 as its fiscal year end.
The
registration statement for the Company’s Initial Public Offering was declared effective on June 24, 2026. On June 26, 2026, the
Company consummated the Initial Public Offering of 27,500,000 units (the “Units” and, with respect to the Class A ordinary
shares included in the Units being offered, the “Public Shares”) at $10.00 per Unit, generating gross proceeds of $275,000,000.
Each Unit consists of one Class A ordinary share and one-third of one redeemable warrant (each, a “Public Warrant”). Each
whole warrant entitles the holder to purchase one Class A ordinary share at a price of $11.50 per share.
Simultaneously
with the closing of the Initial Public Offering, the Company consummated the sale of 2,500,000 warrants (the “Private Placement
Warrants” and together with the Public Warrants, the “Warrants”) at a price of $2.00 per Private Placement Warrant,
in a private placement to the Company’s sponsor, CGC IV Sponsor LLC (the “Sponsor”), and Cantor Fitzgerald & Co.
(“Cantor”), the representative of the underwriters in the Initial Public Offering, generating gross proceeds of $5,000,000.
Of the 2,500,000 Private Placement Warrants, the Sponsor purchased 937,500 Private Placement Warrants and Cantor purchased 1,562,500
Private Placement Warrants.
Transaction
costs amounted to $18,388,139, consisting of $5,000,000 of cash underwriting fees, $11,500,000 of deferred underwriting fees, excess
fair value over cost of founder shares transferred to non-managing members of $1,432,667, and $455,472 of other offering costs.
The
Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering
and the Private Placement Warrants, although substantially all of the net proceeds are intended to be generally applied toward consummating
a Business Combination.
The
Company’s Business Combination must be with one or more target businesses that together have a fair market value equal to at least
80% of the net balance in the Trust Account (as defined below) (excluding the deferred underwriting commissions, permitted withdrawals
(as defined below) prior to our initial Business Combination and taxes payable on the income earned on the Trust Account) at the time
of the signing an agreement to enter into a Business Combination. However, the Company will only complete a Business Combination if the
post-Business Combination company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires
a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company
Act of 1940, as amended (the “Investment Company Act”). There is no assurance that the Company will be able to
successfully effect a Business Combination.
Following
the closing of the Initial Public Offering, on June 26, 2026, an amount of $275,000,000 ($10.00 per Unit) from the net proceeds of the
sale of the Units and the Private Placement Warrants was placed in the trust account (the “Trust Account”), located in the
United States, with Continental Stock Transfer & Trust Company acting as trustee, and invested only in U.S. government treasury
obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under
the Investment Company Act which invest only in direct U.S. government treasury obligations; the holding of these assets in this
form is intended to be temporary and for the sole purpose of facilitating the intended Business Combination. To mitigate the risk that
the Company might be deemed to be an investment company for purposes of the Investment Company Act, which risk increases the longer that
the Company holds investments in the Trust Account, the Company may, at any time (based on the management team’s ongoing assessment
of all factors related to the Company’s potential status under the Investment Company Act), instruct the trustee to liquidate the
investments held in the Trust Account and instead to hold the funds in the Trust Account in cash or in an interest bearing demand deposit
account at a bank. Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company
to pay its taxes, if any, the proceeds from the Initial Public Offering and the sale of the Private Placement Warrants will not be released
from the Trust Account until the earliest of (i) the completion of the Company’s initial Business Combination, (ii) the
redemption of the Company’s public shares if the Company is unable to complete the initial Business Combination within 24 months
from the closing of the Initial Public Offering, or by such earlier date as the Company’s board of directors may approve, or such
other time period in which the Company must complete an initial Business Combination pursuant to an amendment to the Company’s
amended and restated memorandum and articles of association (the “Articles”) approved by the Company’s shareholders
(the “Completion Window”), subject to applicable law, or (iii) the redemption of the Company’s public shares properly
submitted in connection with a shareholder vote to amend the Articles to (A) modify the substance or timing of the Company’s
obligation to allow redemption in connection with the initial Business Combination or to redeem 100% of the Company’s public shares
if the Company has not consummated an initial Business Combination within the Completion Window or (B) with respect to any other
material provisions relating to shareholders’ rights or pre-initial Business Combination activity. The proceeds deposited in the
Trust Account could become subject to the claims of the Company’s creditors, if any, which could have priority over the claims
of the Company’s public shareholders.
CARTESIAN
GROWTH CORPORATION IV
NOTES TO FINANCIAL STATEMENT
JUNE 26, 2026
The
Company will provide the Company’s public shareholders with the opportunity to redeem all or a portion of their public shares
upon the completion of the initial Business Combination either (i) in connection with a general meeting called to approve the
initial Business Combination or (ii) without a shareholder vote by means of a tender offer. The decision as to whether the
Company will seek shareholder approval of a proposed initial Business Combination or conduct a tender offer will be made by the
Company, solely in its discretion. The public shareholders will be entitled to redeem their shares at a per share price, payable in
cash, equal to the aggregate amount then on deposit in the Trust Account calculated as of two business days prior to the
consummation of the initial Business Combination, including interest earned on the funds held in the Trust Account (less taxes
payable, but without deduction for any excise or similar tax that may be due or payable and less permitted withdrawals), divided by
the number of then-outstanding public shares. The Company is permitted to withdraw amounts from the Trust Account to fund the
working capital requirements (including to repay the Sponsor Loan or Working Capital Loans (as defined below)), which amounts shall
not be greater than $250,000 of the interest earned on the Trust Account quarterly, provided that all permitted withdrawals can only
be made (x) from interest and not from the principal held in the Trust Account and (y) only to the extent such interest is
sufficient to cover the permitted withdrawal amount (“permitted withdrawals”). The amount in the Trust Account is
initially invested at $10.00 per Public Share.
The
ordinary shares subject to redemption were recorded at a redemption value and classified as temporary equity upon the completion of the
Initial Public Offering, in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification
(“ASC”) Topic 480, “Distinguishing Liabilities from Equity.”
The
Company will have only the duration of the Completion Window to complete the initial Business Combination. However, if the Company is
unable to complete its initial Business Combination within the Completion Window, the Company will as promptly as reasonably possible
but not more than ten business days thereafter, redeem the public shares, at a per share price, payable in cash, equal to the
aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account (less taxes payable,
but without deduction for any excise or similar tax that may be due or payable, less permitted withdrawals and less up to $100,000 of
interest to pay dissolution expenses), divided by the number of then-outstanding public shares, which redemption will constitute full
and complete payment for the public shares and completely extinguish public shareholders’ rights as shareholders (including the
right to receive further liquidating distributions, if any), subject to the Company’s obligations under Cayman Islands law to provide
for claims of creditors and subject to the other requirements of applicable law.
The
Sponsor, CGC IV Sponsor DirectorCo LLC (“DirectorCo”), and the Company’s officers and directors have entered into letter
agreements with the Company, pursuant to which they have agreed to (i) waive their redemption rights with respect to their founder
shares and public shares in connection with the completion of the initial Business Combination; (ii) waive their redemption rights
with respect to their founder shares and public shares in connection with a shareholder vote to approve an amendment to the Articles;
(iii) waive their rights to liquidating distributions from the Trust Account with respect to their founder shares if the Company
fails to complete the initial Business Combination within the Completion Window, although they will be entitled to liquidating distributions
from the Trust Account with respect to any public shares they hold if the Company fails to complete the initial Business Combination
within the Completion Window and to liquidating distributions from assets outside the Trust Account; and (iv) vote any founder shares
held by them and any public shares purchased during or after the Initial Public Offering (including in open market and privately negotiated
transactions, aside from shares they may purchase in compliance with the requirements of Rule 14e-5 under the Exchange Act,
which would not be voted in favor of approving the Business Combination) in favor of the initial Business Combination.
The
Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party for services rendered or products
sold to the Company (except for the Company’s independent registered public accounting firm), or a prospective target business
with which the Company has entered into a written letter of intent, confidentiality or other similar agreement or Business Combination
agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.00 per public share and (ii) the
actual amount per public share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00
per share due to reductions in the value of the trust assets, less taxes payable (but without deduction for any excise or similar tax
that may be due or payable), and less permitted withdrawals, provided that such liability will not apply to any claims by a third party
or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such
waiver is enforceable) nor will it apply to any claims under the Company’s indemnity of the underwriters of the Initial Public
Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities
Act”). However, the Company has not asked the Sponsor to reserve for such indemnification obligations, nor has the Company independently
verified whether the Sponsor has sufficient funds to satisfy its indemnity obligations and the Company believes that the Sponsor’s
only assets are securities of the Company. Therefore, the Company cannot assure that the Sponsor would be able to satisfy those obligations.
CARTESIAN
GROWTH CORPORATION IV
NOTES TO FINANCIAL STATEMENT
JUNE 26, 2026
Note 2 — Significant
Accounting Policies
Basis
of Presentation
The
accompanying financial statement is presented in conformity with accounting principles generally accepted in the United States of America
(“U.S. GAAP”) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”).
Liquidity
and Capital Resources
The
Company’s liquidity needs up to June 26, 2026 had been satisfied through the loan under an unsecured promissory note from the Sponsor
of up to $750,000. As of June 26, 2026, the Company had $503,633 in cash and a working capital of $169,233.
In
order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the Sponsor or an
affiliate of the Sponsor, or certain of the Company’s officers and directors may, but is not obligated to, loan the Company funds
as may be required (the “Working Capital Loans”). If the Company completes a Business Combination, the Company would repay
such loaned amounts at that time. Up to $1,500,000 of such Working Capital Loans may be converted into warrants upon consummation of
the Business Combination at a price of $2.00 per warrant. The warrants would be identical to the Private Placement Warrants. As of June
26, 2026, the Company had no borrowings under the Working Capital Loans.
In connection with the Company’s assessment
of going concern considerations in accordance with FASB ASC 205-40, “Presentation of Financial Statements—Going Concern,”
management has determined that the Company has sufficient funds to finance the working capital needs of the Company within one year from
the date of issuance of the financial statement. However, if the estimate of the costs of identifying a target business, undertaking
in-depth due diligence and negotiating a Business Combination are less than the actual amount necessary to do so, the Company may have
insufficient funds available to operate its business prior to the initial Business Combination. The Company has the duration of the Completion
Window to complete the initial Business Combination.
Emerging
Growth Company Status
The
Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart
Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various
reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited
to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure
obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding
a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.
Further,
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial
accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective
or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial
accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the
requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not
to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application
dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time
private companies adopt the new or revised standard. This may make comparison of the Company’s financial statement with another
public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition
period difficult or impossible because of the potential differences in accounting standards used.
Use
of Estimates
The
preparation of the financial statement in conformity with US GAAP requires the Company’s management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statement.
Making
estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the financial statement, which management considered in formulating
its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ
significantly from those estimates.
Cash
and Cash Equivalents
The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had $503,633 in cash and no cash equivalents as of June 26, 2026.
Cash
Held in Trust Account
As
of June 26, 2026, the assets held in the Trust Account, amounting to $275,000,000, were held in cash.
Concentration
of Credit Risk
Financial
instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution,
which, at times, may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access
to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows.
Offering
Costs
The
Company complies with the requirements of the ASC 340-10-S99 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses
of Offering.” Offering costs consist principally of professional and registration fees that are related to the Initial Public Offering.
FASB ASC 470-20, “Debt with Conversion and Other Options,” addresses the allocation of proceeds from the issuance of convertible
debt into its equity and debt components. The Company applies this guidance to allocate Initial Public Offering proceeds from the Units
between Class A ordinary shares and Warrants, using the residual method by allocating Initial Public Offering proceeds first to assigned
value of the Warrants and then to the Class A ordinary shares. Offering costs allocated to the Public Shares were charged to temporary
equity, and offering costs allocated to the Public Warrants and Private Placement Warrants were charged to shareholders’ deficit
as Public Warrants and Private Placement Warrants, after management’s evaluation, were accounted for under equity treatment.
CARTESIAN
GROWTH CORPORATION IV
NOTES TO FINANCIAL STATEMENT
JUNE 26, 2026
Fair
Value of Financial Instruments
The
fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, “Fair
Value Measurements and Disclosures,” approximates the carrying amounts represented in the balance sheet, primarily due to their
short-term nature.
Income
Taxes
The
Company accounts for income taxes under ASC Topic 740, “Income Taxes,” which requires an asset and liability approach
to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between
the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted
tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are
established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
ASC
Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement
of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely
than not to be sustained upon examination by taxing authorities. The Company’s management determined that the Cayman Islands is
the Company’s major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits
as income tax expense. As of June 26, 2026, there were no unrecognized tax benefits and no amounts accrued for interest and penalties.
The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation
from its position.
The
Company is considered to be an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently
not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States.
Derivative
Financial Instruments
The
Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded
derivatives in accordance with FASB ASC Topic 815, “Derivatives and Hedging”. For derivative financial instruments that are
accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued
at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments,
including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period in
accordance with FASB ASC Topic 480, “Distinguishing Liabilities from Equity”. Derivative liabilities are classified in the
balance sheet as current or non-current based on whether or not net cash settlement or conversion of the instrument could be required
within 12 months of the balance sheet date. On June 26, 2026, the underwriters partially exercised their over-allotment option in the
amount of 2,500,000 Units and the unexercised balance of 1,250,000 Units remains open. The underwriters' remaining over-allotment option
is deemed to be a freestanding financial instrument indexed to the contingently redeemable shares and was accounted for as a liability
pursuant to ASC 480.
Warrant
Instruments
The
Company accounted for the Public Warrants and Private Placement Warrants issued in connection with the Initial Public Offering and the
sale of private placement in accordance with the guidance contained in FASB ASC Topic 815, “Derivatives and Hedging”. Accordingly,
the Company evaluated and classified the warrant instruments under equity treatment at their relative fair values.
Class
A Ordinary Shares Subject to Possible Redemption
The
Public Shares contain a redemption feature which allows for the redemption of such Public Shares in connection with the Company’s
liquidation, or if there is a shareholder vote or tender offer in connection with the Company’s initial Business Combination. In
accordance with FASB ASC 480-10-S99, the Company classifies Public Shares subject to possible redemption outside of permanent equity
as the redemption provisions are not solely within the control of the Company. The Company recognizes changes in redemption value immediately
as they occur and will adjust the carrying value of redeemable shares to equal the redemption value at the end of each reporting period.
Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption
value. The change in the carrying value of redeemable shares will result in charges against additional paid-in capital (to the extent
available) and accumulated deficit. Accordingly, as of June 26, 2026, Class A ordinary shares subject to possible redemption are presented
at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheet. As
of June 26, 2026, the Class A ordinary shares subject to possible redemption reflected in the balance sheet are reconciled in the following
table:
| Gross proceeds | |
$ | 275,000,000 | |
| Less: | |
| | |
| Proceeds allocated to Public Warrants | |
| (4,980,250 | ) |
| Proceeds allocated to over-allotment option | |
| (65,600 | ) |
| Public Shares issuance costs | |
| (16,636,380 | ) |
| Plus: | |
| | |
| Remeasurement of carrying value to redemption value | |
| 21,682,230 | |
| Class A ordinary shares subject to possible redemption, June 26, 2026 | |
$ | 275,000,000 | |
Recent
Accounting Pronouncements
Management
does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect
on the Company’s financial statement.
CARTESIAN
GROWTH CORPORATION IV
NOTES TO FINANCIAL STATEMENT
JUNE 26, 2026
Note 3 — Initial
Public Offering
In
the Initial Public Offering, on June 26, 2026, the Company sold 27,500,000 Units, which includes the partial exercise by the underwriters
of their over-allotment option in the amount of 2,500,000 Units, at a purchase price of $10.00 per Unit. The Company granted the underwriters
a 45-day option from the date of Initial Public Offering to purchase up to 1,250,000 additional Units to cover the remaining over-allotments
(Note 6). Each Unit consists of one Public Share and one-third of one redeemable Public Warrant. Each warrant will become exercisable
30 days after the completion of the initial Business Combination and will expire five years after the completion of the initial
Business Combination, or earlier upon redemption or liquidation.
Warrants — As
of June 26, 2026, there were 11,666,667 Warrants outstanding, including 9,166,667 Public Warrants and 2,500,000 Private Placement Warrants.
Each whole Warrant entitles the holder to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment
as discussed herein. The warrants cannot be exercised until 30 days after the completion of the initial Business Combination, and
will expire at 5:00 p.m., New York City time, five years after the completion of the initial Business Combination or earlier
upon redemption or liquidation.
The
Company will not be obligated to deliver any Class A ordinary shares pursuant to the exercise of a warrant and will have no obligation
to settle such warrant exercise unless a registration statement under the Securities Act with respect to the Class A ordinary shares
underlying the warrants is then effective and a prospectus relating thereto is current. No warrant will be exercisable and the Company
will not be obligated to issue a Class A ordinary share upon exercise of a warrant unless the Class A ordinary share issuable
upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence
of the registered holder of the warrants. In the event that the conditions in the two immediately preceding sentences are not satisfied
with respect to a warrant, the holder of such warrant will not be entitled to exercise such warrant and such warrant may have no value
and expire worthless. In no event will the Company be required to net cash settle any warrant. In the event that a registration statement
is not effective for the exercised warrants, the purchaser of a Unit containing such warrant will have paid the full purchase price for
the Unit solely for the Class A ordinary share underlying such Unit.
Under
the terms of the warrant agreement, the Company has agreed that, as soon as practicable, but in no event later than 20 business days
after the closing of its initial Business Combination, it will use commercially reasonable efforts to file with the SEC a post-effective
amendment to the registration statement for the Initial Public Offering or a new registration statement covering the registration under
the Securities Act of the Class A ordinary shares issuable upon exercise of the warrants and thereafter will use its commercially
reasonable efforts to cause the same to become effective within 60 business days following the Company’s initial Business
Combination and to maintain a current prospectus relating to the Class A ordinary shares issuable upon exercise of the warrants
until the expiration of the warrants in accordance with the provisions of the warrant agreement. If a registration statement covering
the Class A ordinary shares issuable upon exercise of the warrants is not effective by the sixtieth (60th) business day
after the closing of the initial Business Combination, warrant holders may, until such time as there is an effective registration statement
and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless
basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. Notwithstanding the above, if the
Class A ordinary shares are at the time of any exercise of a warrant not listed on a national securities exchange such that they
satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at
its option, require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with
Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or
maintain in effect a registration statement, and in the event the Company does not so elect, the Company will use its commercially reasonable
efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.
If
the holders exercise their public warrants on a cashless basis, they would pay the warrant exercise price by surrendering the warrants
for that number of Class A ordinary shares equal to the quotient obtained by dividing (x) the product of the number of Class A
ordinary shares underlying the warrants, multiplied by the excess of the “fair market value” of the Class A ordinary
shares over the exercise price of the warrants by (y) the fair market value. The “fair market value” is the average
closing price of the Class A ordinary shares for the 10 trading days ending on the third trading day prior to
the date on which the notice of exercise is received by the warrant agent or on which the notice of redemption is sent to the holders
of warrants, as applicable.
Redemption
of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $18.00: The Company may redeem the outstanding warrants:
| |
● |
in
whole and not in part; |
| |
● |
at
a price of $0.01 per warrant; |
| |
● |
upon
a minimum of 30 days’ prior written notice of redemption (the “30-day redemption period”); and |
| |
● |
if,
and only if, the closing price of the Class A ordinary shares equals or exceeds $18.00 per share (as adjusted for adjustments
to the number of shares issuable upon exercise or the exercise price of a warrant) for any 20 trading days within a 30-trading day
period commencing at least 30 days after completion of the Company’s initial Business Combination and ending three business days
before the Company sends the notice of redemption to the warrant holders. |
CARTESIAN
GROWTH CORPORATION IV
NOTES TO FINANCIAL STATEMENT
JUNE 26, 2026
Additionally,
if the number of outstanding Class A ordinary shares is increased by a share capitalization payable in Class A ordinary shares,
or by a subdivision of ordinary shares or other similar event, then, on the effective date of such share capitalization, subdivision or
similar event, the number of Class A ordinary shares issuable on exercise of each warrant will be increased in proportion to such
increase in the outstanding ordinary shares. A rights offering made to all or substantially all holders of ordinary shares entitling
holders to purchase Class A ordinary shares at a price less than the fair market value will be deemed a share capitalization of
a number of Class A ordinary shares equal to the product of (i) the number of Class A ordinary shares actually sold in
such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable
for Class A ordinary shares) and (ii) the quotient of (x) the price per Class A ordinary share paid in such rights
offering and (y) the fair market value. For these purposes (i) if the rights offering is for securities convertible into or
exercisable for Class A ordinary shares, in determining the price payable for Class A ordinary shares, there will be taken
into account any consideration received for such rights, as well as any additional amount payable upon exercise or conversion and (ii) fair
market value means the volume weighted average price of Class A ordinary shares as reported during the ten (10) trading day
period ending on the trading day prior to the first date on which the Class A ordinary shares trade on the applicable
exchange or in the applicable market, regular way, without the right to receive such rights.
Note 4 — Private
Placement
Simultaneously
with the closing of the Initial Public Offering, the Sponsor and Cantor purchased an aggregate of 2,500,000 Private Placement Warrants,
at a price of $2.00 per Private Placement Warrant, or $5,000,000 in the aggregate, in a private placement, of which 937,500 Private Placement
Warrants were purchased by the Sponsor and 1,562,500 Private Placement Warrants were purchased by Cantor. Each Private Placement Warrant
entitles the registered holder to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment.
The
Private Placement Warrants will be identical to the Public Warrants sold in the Initial Public Offering except that, so long as they
are held by the Sponsor, Cantor, or their permitted transferees, the Private Placement Warrants (i) may not (including the Class A
ordinary shares issuable upon exercise of these Private Placement Warrants), subject to certain limited exceptions, be transferred, assigned
or sold by the holders until 30 days after the completion of the initial Business Combination, (ii) will be entitled to registration
rights and (iii) with respect to Private Placement Warrants held by Cantor and/or its designees, will not be exercisable more than
five years from the commencement of sales in this offering in accordance with Financial Industry Regulatory Authority (“FINRA”)
Rule 5110(g)(8).
The
Sponsor, DirectorCo, and the Company’s officers and directors have entered into letter agreements with the Company, pursuant to
which they have agreed to (i) waive their redemption rights with respect to their founder shares and public shares in connection
with the completion of the initial Business Combination; (ii) waive their redemption rights with respect to their founder shares
and public shares in connection with a shareholder vote to approve an amendment to the Articles (A) to modify the substance or timing
of the Company’s obligation to allow redemption in connection with the initial Business Combination or to redeem 100% of the public
shares if the Company has not consummated an initial Business Combination within the Completion Window or (B) with respect to any
other material provisions relating to shareholders’ rights or pre-initial Business Combination activity; (iii) waive their
rights to liquidating distributions from the Trust Account with respect to their founder shares if the Company fails to complete the
initial Business Combination within the Completion Window, although they will be entitled to liquidating distributions from the Trust
Account with respect to any public shares they hold if the Company fails to complete the initial Business Combination within the Completion
Window and to liquidating distributions from assets outside the Trust Account; and (iv) vote any founder shares held by them and
any public shares purchased during or after the Initial Public Offering (including in open market and privately negotiated transactions,
aside from shares they may purchase in compliance with the requirements of Rule 14e-5 under the Exchange Act, which would not
be voted in favor of approving the Business Combination) in favor of the initial Business Combination.
Note 5 — Related
Party Transactions
Founder
Shares
On
March 18, 2026, the Sponsor and DirectorCo made a capital contribution of an aggregate of $25,000, or approximately $0.003 per share,
to cover certain of the Company’s expenses, for which the Company issued an aggregate of 7,187,500 founder shares to the Sponsor
and DirectorCo. Up to 937,500 of the founder shares may be surrendered by the Sponsor for no consideration depending on the extent to
which the underwriters’ over-allotment option is exercised. Subsequently, on June 26, 2026, the underwriters partially exercised
their over-allotment option in the amount of 2,500,000 Units and the unexercised balance of 1,250,000 Units remains open. As a result
of the partial exercise of the over-allotment option by the underwriters, 625,000 founder shares are no longer subject to surrender
and 312,500 founder shares remain subject to surrender.
As of June 26, 2026, the non-managing members
of the Sponsor subscribed for interests in the Sponsor. No new founder shares were issued to the Sponsor. Because this subscription is
treated by the Company as a transfer by the Sponsor to such non-managing members of a portion of the founder shares, the Company has analyzed
such transfer and whether it is in the scope of SEC’s Staff Accounting Bulletin (“SAB”) Topic 5A, Expenses of Offering,
which indicates that “Specific incremental costs directly attributable to a proposed or actual offering of securities may properly
be deferred and charged against the gross proceeds of the offering”. This subscription of the non-managing members of the Sponsor
for interests in the Sponsor represents an indirect interest in up to 1,166,667 of the 7,187,500 founder shares as of June 26, 2026. The
subscription price paid by the non-managing members of the Sponsor for such interests in the Sponsor was $3,500 in the aggregate, or $0.003
per implied founder share, assuming an interest in 1,166,667 founder shares. The total fair value of the 1,166,667 founder shares on June
26, 2026, was $1,436,167 or $1.231 per share. The Company established the initial fair value of the founder shares on June 26, 2026, using
a Monte Carlo Simulation Model, and classified as Level 3 at the measurement date due to the use of unobservable inputs including the
probability of a Business Combination, the probability of the Initial Public Offering, and other variables. The primary assumptions used
in the valuation of founder shares were (i) a share price of $9.819, (ii) a restricted term of 2.75 years, (iii) the risk-free rate of
4.08%, (iv) volatility of 11.4%, (v) a likelihood of initial Business Combination of 13.1%, and (vi) a discount for lack of marketability
of 4.3%. The fair value of founder shares transferred to non-managing members less the consideration paid by them, or $1,432,667, was
recorded as an offering cost and was allocated solely to permanent equity and was charged to additional paid-in capital.
CARTESIAN
GROWTH CORPORATION IV
NOTES TO FINANCIAL STATEMENT
JUNE 26, 2026
The
Company’s initial shareholders have agreed not to transfer, assign or sell any of their founder shares and any Class A ordinary
shares issued upon conversion thereof until the earlier to occur of (i) one year after the completion of the initial Business Combination
or (ii) the date on which the Company completes a liquidation, merger, share exchange or other similar transaction after the initial
Business Combination that results in all of the Company’s shareholders having the right to exchange their Class A ordinary
shares for cash, securities or other property. Any permitted transferees will be subject to the same restrictions and other agreements
of the Company’s initial shareholders with respect to any founder shares (the “Lock-up”). Notwithstanding the foregoing,
if the closing price of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share subdivisions, share
capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period
commencing at least 150 days after the initial Business Combination, the founder shares will be released from the Lock-up.
Sponsor
Loan
The Sponsor has agreed to loan the Company an aggregate
of up to $750,000 to be used for a portion of the expenses of the Initial Public Offering (“Sponsor Loan”). The loan is non-interest
bearing, unsecured and due on the closing of the initial Business Combination, but may be prepaid at any time. As of June 26, 2026, the
Company had borrowed $750,000 under the Sponsor Loan.
Related
Party Loans
In
order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of
the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required. If the Company completes
a Business Combination, the Company would repay the Working Capital Loans. In the event that a Business Combination does not close, the
Company may use a portion of the working capital held outside the Trust Account to repay the Working Capital Loans but no proceeds from
the Trust Account would be used to repay the Working Capital Loans. Up to $1,500,000 of such Working Capital Loans may be convertible
into warrants of the post Business Combination entity at a price of $2.00 per warrant at the option of the lender. The warrants
would be identical to the Private Placement Warrants. As of June 26, 2026, no such Working Capital Loans were outstanding.
Note 6 — Commitments
and Contingencies
Risks
and Uncertainties
The
United States and global markets are experiencing volatility and disruption following the geopolitical instability resulting from
the ongoing Russia-Ukraine conflict and the recent escalation of the conflicts involving the United States, Israel, Iran and others in
the Middle East and Southwest Asia. In response to the ongoing Russia-Ukraine conflict, the North Atlantic Treaty Organization (“NATO”)
deployed additional military forces to eastern Europe, and the United States, the United Kingdom, the European Union and other countries
have announced various sanctions and restrictive actions against Russia, Belarus and related individuals and entities, including the
removal of certain financial institutions from the Society for Worldwide Interbank Financial Telecommunication payment system. Certain
countries, including the United States, have also provided and may continue to provide military aid or other assistance to Ukraine
and to Israel, increasing geopolitical tensions among a number of nations. The invasion of Ukraine by Russia and escalation of the conflict
involving the United States, Israel, Iran and others in the Middle East and Southwest Asia and the resulting measures that have been
taken, and could be taken in the future, by NATO, the United States, the United Kingdom, the European Union, Israel and its
neighboring states and other countries have created global security concerns that could have a lasting impact on regional and global
economies. Although the length and impact of the ongoing conflicts are highly unpredictable, they could lead to market disruptions, including
significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions and increased cyberattacks
against U.S. companies. Additionally, any resulting sanctions could adversely affect the global economy and financial markets and
lead to instability and lack of liquidity in capital markets.
Any
of the above mentioned factors, or any other negative impact on the global economy, capital markets or other geopolitical conditions
resulting from the Russian invasion of Ukraine, the recent escalation of the conflicts involving the United States, Israel, Iran and
others in the Middle East and Southwest Asia and subsequent sanctions or related actions, could adversely affect the Company’s
search for an initial Business Combination and any target business with which the Company may ultimately consummate an initial Business
Combination.
CARTESIAN
GROWTH CORPORATION IV
NOTES TO FINANCIAL STATEMENT
JUNE 26, 2026
Registration
Rights
The
holders of the founder shares (and the Class A ordinary shares issuable upon conversion of the founder shares), Private Placement
Warrants (and the Class A ordinary shares underlying such Private Placement Warrants), and private placement equivalent-warrants
that may be issued upon conversion of the Working Capital Loans are entitled to registration rights to require the Company to register
a sale of any of the Company’s securities held by them and any other securities of the Company acquired by them prior to the consummation
of the initial Business Combination pursuant to a registration rights agreement signed on June 24, 2026. The holders of these securities
are entitled to make up to three demands, excluding short form demands, that the Company registers such securities. In addition, the
holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion
of the initial Business Combination. Notwithstanding anything to the contrary, Cantor may only make a demand on one occasion and only
during the five-year period beginning from the commencement of sales in the Initial Public Offering. In addition, Cantor may participate
in a “piggy-back” registration only during the seven-year period beginning from the commencement of sales in the Initial
Public Offering. The Company will bear the expenses incurred in connection with the filing of any such registration statements.
Underwriters’
Agreement
The
underwriters have a 45-day option from the date of the Initial Public Offering to purchase up to an additional 3,750,000 Units to
cover over-allotments, if any. On June 26, 2026, the underwriters partially exercised their over-allotment option in the amount of 2,500,000
Units and the unexercised balance of 1,250,000 Units remains open.
The
underwriters were entitled to a cash underwriting discount of $5,000,000 (2.0% of the gross proceeds of the Units sold in the Initial
Public Offering, excluding any proceeds from Units sold pursuant to the underwriters’ over-allotment option), which was paid at
the closing of the Initial Public Offering. Additionally, the underwriters were entitled to a deferred underwriting discount of 4.0%
of the gross proceeds of the Initial Public Offering held in the Trust Account, other than the gross proceeds from Units sold pursuant
to the underwriters’ over-allotment option, and 6.0% of the gross proceeds from Units sold pursuant to the underwriters’
over-allotment option, or $11,500,000 in the aggregate (or an addition of up to $750,000 in the aggregate depending on the extent to
which the underwriters’ remaining over-allotment option is exercised within the 45-day period following the closing of the Initial
Public Offering ) payable upon the completion of the Company’s initial Business Combination subject to the terms of the underwriting
agreement.
Note 7 — Shareholders’
Deficit
Preference
Shares — The Company is authorized to issue a total of 1,000,000 preference shares at par value of $0.0001 each.
As of June 26, 2026, there were no preference shares issued or outstanding.
Class A
Ordinary Shares — The Company is authorized to issue a total of 200,000,000 Class A ordinary shares at par
value of $0.0001 each. As of June 26, 2026, there were no Class A ordinary shares issued or outstanding, excluding 27,500,000 shares
subject to possible redemption.
Class B Ordinary Shares — The
Company is authorized to issue a total of 20,000,000 Class B ordinary shares at par value of $0.0001 each. As of June 26, 2026, there
were 7,187,500 Class B ordinary shares issued and outstanding, of which an aggregate of up to 312,500 Class B ordinary shares remain subject
to surrender depending on the extent to which the underwriters’ remaining over-allotment option is exercised within the 45-day period
following the closing of the Initial Public Offering.
The
founder shares will automatically convert into Class A ordinary shares concurrently with or immediately following the consummation
of the initial Business Combination or earlier at the option of the holder on a one-for-one basis, subject to adjustment for share subdivisions,
share capitalizations, reorganizations, recapitalizations and the like, and subject to further adjustment as provided herein. In the
case that additional Class A ordinary shares, or any other equity-linked securities, are issued or deemed issued in excess of the
amounts sold in the Initial Public Offering and related to or in connection with the closing of the initial Business Combination, the
ratio at which Class B ordinary shares convert into Class A ordinary shares will be adjusted (unless the holders of a majority
of the outstanding Class B ordinary shares agree to waive such adjustment with respect to any such issuance or deemed issuance)
so that the number of Class A ordinary shares issuable upon conversion of all Class B ordinary shares will equal, in the aggregate,
20% of the sum of (i) the total number of all Class A ordinary shares outstanding upon the completion of the Initial Public
Offering (including any Class A ordinary shares issued pursuant to the underwriters’ over-allotment option and excluding the
Class A ordinary shares underlying the Private Placement Warrants), plus (ii) all Class A ordinary shares and equity-linked
securities issued or deemed issued, in connection with the closing of the initial Business Combination (excluding any shares or equity-linked
securities issued, or to be issued, to any seller in the initial Business Combination and any private placement-equivalent warrants issued
to the Sponsor or any of its affiliates or to the Company’s officers or directors upon conversion of Working Capital Loans) minus
(iii) any redemptions of Class A ordinary shares by public shareholders in connection with an initial Business Combination;
provided that such conversion of founder shares will never occur on a less than one-for-one basis.
Holders of record of the Company’s
Class A ordinary shares and Class B ordinary shares are entitled to one vote for each share held on all matters to be voted
on by shareholders. Unless specified in the Articles or as required by the Companies Act (Revised) of the Cayman Islands, as the same
may be amended from time to time, or stock exchange rules, an ordinary resolution under Cayman Islands law and the Articles, which requires
the affirmative vote of at least a majority of the votes cast by such shareholders as, being entitled to do so, vote in person or, where
proxies are allowed, by proxy at the applicable general meeting of the Company, is generally required to approve any matter voted on
by the Company’s shareholders. Approval of certain actions requires a special resolution under Cayman Islands law, which (except
as specified below) requires the affirmative vote of at least two-thirds of the votes cast by such shareholders as, being entitled to
do so, vote in person or, where proxies are allowed, by proxy at the applicable general meeting of the Company, and pursuant to the Articles,
such actions include amending the Articles and approving a statutory merger or consolidation with another company. There is no cumulative
voting with respect to the appointment of directors, meaning, following the Company’s initial Business Combination, the holders
of more than 50% of the ordinary shares voted for the appointment of directors can elect all of the directors. Prior to the consummation
of the initial Business Combination, only holders of the Class B ordinary shares will (i) have the right to vote on the appointment
and removal of directors and (ii) be entitled to vote on continuing the Company in a jurisdiction outside the Cayman Islands (including
any special resolution required to amend the constitutional documents or to adopt new constitutional documents, in each case, as a result
of approving a transfer by way of continuation in a jurisdiction outside the Cayman Islands). Holders of the Class A ordinary shares
will not be entitled to vote on these matters during such time. These provisions of the Articles may only be amended if approved by a
special resolution passed by the affirmative vote of at least 90% (or, where such amendment is proposed in respect of the consummation
of the initial Business Combination, two-thirds) of the votes cast by such shareholders as, being entitled to do so, vote in person or,
where proxies are allowed, by proxy at the applicable general meeting of the Company.
CARTESIAN
GROWTH CORPORATION IV
NOTES TO FINANCIAL STATEMENT
JUNE 26, 2026
Note
8 — Fair Value Measurements
Fair
value is defined as the price that would be received for sale of an asset or paid for transfer of a liability in an orderly transaction
between market participants at the measurement date. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets
or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:
| |
● |
Level 1,
defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |
| |
● |
Level 2,
defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices
for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
| |
● |
Level 3,
defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions,
such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy.
In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level
input that is significant to the fair value measurement. |
The
over-allotment option was accounted for as a liability in accordance with FASB ASC 480 and was presented within liabilities on the balance
sheet. The over-allotment option liability is measured at fair value at inception and on a recurring basis, with changes in fair value
presented within changes in fair value of over-allotment option liability in the statement of operations.
The
fair value of the over-allotment option is $65,600, or $0.052 per option unit. The Company used a Black-Scholes model to value the over-allotment
option. The over-allotment option liability was classified within Level 3 of the fair value hierarchy at the measurement date due to
the use of unobservable inputs inherent in pricing models are assumptions related to expected share-price volatility, expected life and
risk-free interest rate. The Company estimates the volatility of its ordinary shares based on historical volatility that matches the
expected remaining life of the option. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant
date for a maturity similar to the expected remaining life of the option. The expected life of the option is assumed to be equivalent
to their remaining contractual term.
The
key inputs into the Black-Scholes model were as follows at initial measurement of the over-allotment option:
| | |
June 26,
2026 | |
| Risk-free interest rate | |
| 3.70 | % |
| Expected term (years) | |
| 0.12 | |
| Volatility | |
| 1.67 | % |
| Exercise price | |
$ | 10.00 | |
The
fair value of the Public Warrants is $4,980,250 or $0.543 per Public Warrant. The fair value of Public Warrants was determined using
Monte Carlo Simulation Model. The Public Warrants have been classified within shareholders’ deficit and will not require remeasurement
after issuance. The following table presents the quantitative information regarding market assumptions used in the Level 3 valuation
of the Public Warrants:
| | |
June 26,
2026 | |
| Volatility | |
| 11.4 | % |
| Risk-free rate | |
| 4.08 | % |
| Share price | |
$ | 9.82 | |
| Weighted term (years) | |
| 2.66 | |
Note
9 — Segment Information
FASB
ASC Topic 280, “Segment Reporting,” establishes standards for companies to report in their financial statement information
about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of
an enterprise for which separate financial information is available that is regularly evaluated by the Company’s Chief Operating
Decision Maker (“CODM”), or group, in deciding how to allocate resources and assess performance.
The
Company’s CODM has been identified as the Chief Executive Officer, who reviews the assets, operating results and financial metrics
for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management
has determined that the Company only has one operating segment.
The
CODM assesses performance for the single segment and decides how to allocate resources. The measure of segment assets is reported on
the balance sheet as total assets. When evaluating the Company’s performance and making key decisions regarding resource allocation,
the CODM reviews several key metrics included in the total assets, which include the following:
| | |
June 26,
2026 | |
| Cash | |
$ | 503,633 | |
| Cash held in Trust Account | |
$ | 275,000,000 | |
The
CODM reviews the position of total assets to assess if the Company has sufficient resources available to discharge its liabilities. The
CODM is provided with details of cash and liquid resources available with the Company. The CODM will review the interest that will be
earned and accrued on cash held in Trust Account to measure and monitor shareholder value and determine the most effective strategy of
investment with the Trust Account funds while maintaining compliance with the Trust Agreement.
Note 10 — Subsequent
Events
The
Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date that the financial statement
was issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure
in the financial statement.
F-12
