Company: BACC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001185185-25-000948
Chunk: 81

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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 We intend to effectuate
our initial Business Combination using cash from the proceeds of the Initial Public Offering and the Private Placement, the proceeds of
the sale of our securities in connection with our initial Business Combination (pursuant to any forward purchase agreements or backstop
agreements we may enter into following the consummation of the Initial Public Offering or otherwise), shares issued to the owners of the
target, debt issued to bank or other lenders or the owners of the target, other securities issuances, or a combination of the foregoing.

The issuance of additional securities in connection
with a Business Combination to the owners of the target or other investors:

    ●
    may significantly dilute the equity interest of our shareholders, which dilution would increase if the anti-dilution provisions in the Class B Ordinary Shares resulted in the issuance of Class A Ordinary Shares on a greater than one-for-one basis upon conversion of the Class B Ordinary Shares;

    ●
    may subordinate the rights of holders of Class A Ordinary Shares if preference shares are issued with rights senior to those afforded our Class A Ordinary Shares;

    ●
    could cause a change in control if a substantial number of our Class A Ordinary Shares are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and directors;

    ●
    may have the effect of delaying or preventing a change of control of us by diluting the share ownership or voting rights of a person seeking to obtain control of us; and

    ●
    may adversely affect prevailing market prices for our Class A Ordinary Shares and/or Rights.

17

Similarly,
if we issue debt securities or otherwise incur significant debt to bank or other lenders or the owners of a target, it could result in:

    ●
    default and foreclosure on our assets if our operating revenues after an initial Business Combination are insufficient to repay our debt obligations;

    ●
    acceleration
    of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants
    that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant;

    ●
    our
    immediate payment of all principal and accrued interest, if any, if the debt security is payable on demand;

    ●
    our
    inability to obtain necessary additional financing if the debt security contains covenants restricting our