Company: BACC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001185185-25-001689
Chunk: 37

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 37
---
 Combination activity. The
proceeds deposited in the Trust Account could become subject to the claims of our creditors, if any, which could have priority over the
claims of our Public Shareholders.

We
intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the Trust
Account (excluding deferred underwriting commissions). We may withdraw interest to pay our income taxes, if any. Our annual income tax
obligations will depend on the amount of interest and other income earned on the amounts held in the Trust Account. We expect the interest
earned on the amount in the Trust Account will be sufficient to pay our income taxes. To the extent that our equity or debt is used,
in whole or in part, as consideration to complete our initial Business Combination, the remaining proceeds held in the Trust Account
will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our
growth strategies.

As
of September 30, 2025, we had $1,045,403 of cash held outside the Trust Account (assuming our offering expenses are as expected). We
will use these funds to primarily identify and evaluate target businesses, perform business due diligence on prospective target businesses,
travel to and from the offices, plants or similar locations of prospective target businesses or their representatives or owners, review
corporate documents and material agreements of prospective target businesses, and structure, negotiate and complete a Business Combination.

We
do not believe we will need to raise additional funds following the Initial Public Offering in order to meet the expenditures required
for operating our business prior to our initial Business Combination. However, if our estimates of the costs of identifying a target
business, undertaking in-depth due diligence and negotiating an initial Business Combination are less than the actual amount necessary
to do so, we may have insufficient funds available to operate our business prior to our initial Business Combination.

In
order to fund working capital deficiencies or finance transaction costs in connection with an intended initial Business Combination,
our Sponsor or an affiliate of our Sponsor or certain of our officers and directors may, but are not obligated to, loan us Working Capital
Loans as may be required. If we complete our initial Business Combination, we would repay such Working Capital Loans. In the event that
our initial Business Combination does not close, we may use amounts held outside the Trust Account to repay such Working Capital Loans,
but no proceeds from our Trust Account would be used for such repayment. Up to $1