Company: BACC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001185185-25-001689
Chunk: 106

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 106
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 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 $1,500,000 of such Working Capital Loans may be convertible
into units of the post-Business Combination entity at a price of $10.00 per unit at the option of the lender. Such units would be identical
to the Private Placement Units. The terms of such Working Capital Loans, if any, have not been determined and no written agreements exist
with respect to such Working Capital Loans. Prior to the completion of our initial Business Combination, we do not expect to seek loans
from parties other than our Sponsor or an affiliate of our Sponsor as we do not believe third parties will be willing to loan such funds
and provide a waiver against any and all rights to seek access to funds in our Trust Account.

We
expect our primary liquidity requirements during the first twelve months of our Combination Period to include approximately $225,000
for legal, accounting, due diligence, travel and other expenses associated with structuring, negotiating and documenting successful business
combinations; $200,000 for legal and accounting fees related to regulatory reporting requirements; $85,000 for Nasdaq and other regulatory
fees; $60,000 for office space and administrative services; approximately $400,000 for directors’ and officers’ liability
insurance; and approximately $180,000 for general working capital that