Company: BACC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001185185-25-000948
Chunk: 23

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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300,000 (the “Promissory Note”) to be used for a portion of the expenses of the Initial Public Offering.
The Promissory Note is non-interest bearing, unsecured and due at the earlier of December 31, 2025 or the closing of the Initial Public
Offering. The loan was repaid out of the $747,500 of offering proceeds that has been allocated to the payment of offering expenses. As
of June 16, 2025, the date the Company consummated its Initial Public Offering, the Company had borrowed $193,236 under the Promissory
Note. On June 16, 2025, the Company paid $203,557 to the Sponsor, resulting in an overpayment of $10,321 that is recorded as a related
party receivable as of June 30, 2025. The Promissory Note was repaid in full and is no longer available to the Company as of June 30,
2025.

Administrative
Services Agreement 

Commencing on the effective date of the Initial Public
Offering, the Company entered into an agreement with Blue Holdings Management LLC, the managing member of our Sponsor, to pay an aggregate
of $5,000 per month for office space, utilities, and secretarial and administrative support. These monthly fees will cease upon the completion
of the initial Business Combination or the liquidation of the Company. For the three months ended June 30, 2025 and for the period
from February 10, 2025 (inception) through June 30, 2025, the Company recorded $2,333 to administrative services fee – related party
on the statement of operations and has not paid any amounts as of June 30, 2025, resulting in an accrual of $2,333 to administrative services
fee payable – related party on the balance sheet.

Working Capital Loans 

In order to finance transaction costs in connection
with a Business Combination, the Sponsor, BHM, certain of the Company’s officers or directors, or any of their respective affiliates
may, but are 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 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