Company: BACC
Filing Date: 2025-05-14
Form Type: S-1
Source: 0001185185-25-000465
Chunk: 79

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-05-14
Form: S-1
Chunk 79
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. The trust account is intended solely as a temporary depository for funds pending the earliest to occur of: (i) the completion of our initial business combination; (ii) the redemption of any public shares properly submitted in connection with a shareholder vote to amend our amended and restated memorandum and articles of association (A) in a manner that would affect the substance or timing of our obligation to redeem 100% of our public shares if we do not complete our initial business combination within the completion window; or (B) with respect to any other provision relating to the rights of holders of our Class A ordinary shares or pre-initial business combination activity; or (iii) absent an initial business combination within the completion window, from the closing of this offering, our return of the funds held in the trust account to our public shareholders as part of our redemption of the public shares. If we do not invest the proceeds as discussed above, we may be deemed to be subject to the Investment Company Act.

Further, under the subjective test of a “investment company” pursuant to Section 3(a)(1)(A) of the Investment Company Act, even if the funds deposited in the trust account were invested in the assets discussed above, such assets, other than cash, are “securities” for purposes of the Investment Company Act and, therefore, there is a risk that we could be deemed an investment company and subject to the Investment Company Act.

We are aware of litigation claiming that certain SPACs
should be considered to be investment companies. Although we believe that these claims were without merit, we cannot guarantee that we
will not be deemed to be an investment company and thus subject to the Investment Company Act. In the adopting release for the 2024 SPAC
Rules (as defined below), the SEC provided guidance that a SPAC’s potential status as an “investment company” depends
on a variety of factors, such as a SPAC’s duration, asset composition, business purpose and activities and “is a question
of facts and circumstances” requiring individualized analysis. If we were deemed to be subject to the Investment Company Act, compliance
with these additional regulatory burdens would require additional expenses for which we have not allotted funds and may hinder our ability
to complete an initial business combination or may result in our winding down our operations and our liquidation. If we are unable to
complete our initial business combination, our public shareholders may receive only approximately $10.00 per share on the liquidation
of our trust account and our Share Rights will expire