Company: BACC
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001185185-25-000892
Chunk: 101

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 2
Chunk 101
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 not consummated an initial Business
Combination within the Combination Period or (2) any other material provisions relating to shareholders’ rights or pre-initial Business
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 March 31, 2025, we had $70,030 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