Company: BLUWU
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023451
Chunk: 30

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 30
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 proceeds of the sale of our shares in connection with our initial business combination
(pursuant to forward purchase agreements or backstop agreements we may enter into following the consummation of the initial public offering
or otherwise), shares issued to the owners of the target, debt issued to bank or other lenders or the owners of the target, other securities
issuances, or a combination of the foregoing.

The
issuance of additional shares in connection with a business combination to the owners of the target or other investors:

    ●
    may
    significantly dilute the equity interest of investors in the initial public offering, which dilution would increase if the anti-dilution
    provisions in the Class B ordinary shares resulted in the issuance of Class A ordinary shares on a greater than one-to-one basis
    upon conversion of the Class B ordinary shares;

    ●
    may
    subordinate the rights of holders of Class A ordinary shares if preference shares are issued with rights senior to those afforded
    our Class A ordinary shares;

    ●
    could
    cause a change in control if a substantial number of our Class A ordinary shares are issued, which may affect, among other things,
    our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers
    and directors;

    ●
    may
    have the effect of delaying or preventing a change of control of us by diluting the share ownership or voting rights of a person
    seeking to obtain control of us; and

    ●
    may
    adversely affect prevailing market prices for our Class A ordinary shares and/or warrants.

17

Similarly,
if we issue debt securities or otherwise incur significant debt to bank or other lenders or the owners of a target, it could result in:

    ●
    default
    and foreclosure on our assets if our operating revenues after an initial business combination are insufficient to repay our debt
    obligations;

    ●
    acceleration
    of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants
    that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant;

    ●
    our
    immediate payment of all principal and accrued interest, if any, if the debt security is payable on demand;

    ●
    our
    inability to obtain necessary additional financing if the debt security contains covenants restricting our ability to obtain such