Company: BLUWU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024010
Chunk: 27

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1
Chunk 27
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To
the knowledge of our management, there is no material litigation, arbitration or governmental proceeding currently pending against us,
any of our officers or directors in their capacity as such or against any of our property.

Item
1A. Risk Factors.

As smaller reporting company, we are not required to make disclosures under
this Item.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.

Recent
Sales of Unregistered Securities

On December 3, 2024, the Sponsor made capital contributions
of $25,000 to cover certain of the Company’s expenses, for which the Company issued 5,750,000 founder shares, or approximately $0.004
per share, to the Sponsor. On June 9, 2025, the Company, through a share capitalization, issued the Sponsor an additional 575,000 founder
shares, resulting in the Sponsor holding 6,325,000 founder shares in the aggregate.

Simultaneously with the closing of the Company’s
initial public offering, the Company consummated a private placement of an aggregate of 683,000 private placement units to the Sponsor
and BTIG, LLC, at a price of $10.00 per private placement unit, generating total proceeds of $6,830,000. Each private placement consists
of one Class A Ordinary Share and one-half of one redeemable warrant, with each whole warrant entitling the holder thereof to purchase
one Class A Ordinary Share for $11.50 per share (subject to adjustment). Of those 683,000 private placement units, the Sponsor purchased
430,000 private placement units and BTIG purchased 253,000 private placement units.

The private placement units are identical to the Units
sold in the initial public offering except with respect to certain registration rights and transfer restrictions, as described in the
registration statement relating to the Company’s initial public offering. Additionally, such holders agreed not to transfer, assign
or sell any of the private placement units or underlying securities (except in limited circumstances, as described in the Registration
Statement) until 30 days after the completion of the Company’s initial business combination. The holders were granted certain demand
and piggyback registration rights in connection with the purchase of the private placement units and the underlying securities.

The private placement units were issued pursuant to Section 4(a)(2) of
the Securities Act, as the transaction did not involve a public offering.

Use
of Proceeds from our Initial Public Offering

On
June