Company: BACC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001185185-25-001689
Chunk: 38

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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,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 will be used for miscellaneous expenses and reserves.

20

These
amounts are estimates and may differ materially from our actual expenses. In addition, we could use a portion of the funds not being
placed in the Trust Account to pay commitment fees for financing, fees to consultants to assist us with our search for a target business
or as a down payment or to fund a “no-shop” provision (a provision designed to keep target businesses from “shopping”
around for transactions with other companies or investors on terms more favorable to such target businesses) with respect to a particular
proposed Business Combination, although we do not have any current intention to do so. If we entered into an agreement where we paid
for the right to receive exclusivity from a target business, the amount that would be used as a down payment or to fund a “no-shop”
provision would be determined based on the terms of the specific Business Combination and the amount of our available funds at the time.
Our forfeiture of such funds (whether as a result of our breach or otherwise) could result in our not having sufficient funds to continue
searching for, or conducting due diligence with respect to, prospective target businesses.

Moreover,
we may need to obtain additional financing to complete our