Cartesian Growth Corporation II Reports Decrease in Net Income and Faces Liquidity Concerns

Cartesian Growth Corporation II reported its financial results for the quarter ending March 31, 2025, revealing a net income of $559,864, a significant decrease from the $2,534,872 reported in the same period last year. The decline in profitability is attributed to a drop in interest income from cash and marketable securities held in the trust account, which fell to $672,811 from $2,276,486 year-over-year. Operating costs also decreased to $195,387 from $223,183, reflecting the company's ongoing efforts to manage expenses as it continues to seek a target for its initial business combination.

The company's total assets as of March 31, 2025, stood at $85,973,495, a slight increase from $85,004,444 at the end of the previous fiscal year. Cash and marketable securities held in the trust account amounted to $85,688,408, up from $84,565,597. However, the company reported a working capital deficit of $3,682,958, raising concerns about its liquidity and ability to continue operations without completing a business combination. The company has extended its business combination period multiple times, with the latest extension allowing until November 5, 2025, to complete a merger or acquisition.

Operationally, Cartesian Growth Corporation II has not yet commenced any business activities since its inception in October 2021. The company has focused on identifying potential acquisition targets and has incurred costs primarily related to its public company obligations and due diligence efforts. As of March 31, 2025, the company had 21,620,559 Class A ordinary shares and two Class B ordinary shares outstanding. The number of Class A shares subject to possible redemption was 7,249,712, reflecting shareholder redemptions in connection with the company's charter amendments.

In terms of strategic developments, the company has faced challenges, including a recent notice from Nasdaq regarding the delisting of its securities due to the failure to complete a business combination within the required timeframe. The company did not appeal this decision and expects its securities to be quoted on the over-the-counter market following the delisting. Management has indicated that it will continue to seek opportunities for a business combination and is exploring various financing options to support its operations and potential acquisitions.

Looking ahead, Cartesian Growth Corporation II's management has expressed concerns about its ability to continue as a going concern, given its current liquidity position and the need to complete a business combination. The company plans to utilize funds held outside the trust account for operational expenses and to identify potential acquisition targets. The ongoing geopolitical and economic uncertainties may also impact the company's ability to secure financing and successfully complete a business combination in the future.