Company: BLUWU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024010
Chunk: 61

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 respect to the specific application of the net proceeds of the Initial Public
Offering and the sale of the Private Placement Units, although substantially all of the net proceeds are intended to be generally
applied toward consummating a Business Combination (less deferred underwriting commissions).

The
Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the net
balance in the Trust Account (as defined below) (excluding the amount of deferred underwriting discounts held and taxes payable
on the income earned on the Trust Account) at the time of the signing of an agreement to enter into a Business Combination. However,
the Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the outstanding
voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register
as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”). There is no
assurance that the Company will be able to successfully effect a Business Combination.

Following
the closing of the Initial Public Offering, on June 11, 2025, an amount of $253,000,000
($10.00
per Unit) from the net proceeds of the sale of the Units and the sale of the Private Placement Units, was placed in the trust
account (the “Trust Account”), with Continental Stock Transfer & Trust Company acting as trustee. The funds are
initially held in cash, including demand deposit accounts at a bank, or invested only in U.S. government treasury obligations with a
maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act,
which invest only in direct U.S. government treasury obligations; the holding of these assets in this form is intended to be
temporary and for the sole purpose of facilitating the intended Business Combination. To mitigate the risk that the Company might be
deemed to be an investment company for purposes of the Investment Company Act, which risk increases the longer that the Company
holds investments in the Trust Account, the Company may, at any time (based on management team’s ongoing assessment of all
factors related to the potential status under the Investment Company Act), instruct the trustee to liquidate the investments held in
the Trust Account and instead to hold the funds in the Trust Account in cash or in an interest