Company: BLUWU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024010
Chunk: 4

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 4
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 placed in the trust account, with Continental Stock Transfer & Trust Company acting as trustee. The funds are initially
to be 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 we might be deemed to be an investment company
for purposes of the Investment Company Act, which risk increases the longer that we hold investments in the trust account, we 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 bearing demand deposit account at a bank. Except with respect to interest earned on the funds held in the trust
account that may be released to us to pay our taxes, if any, the proceeds from the initial public offering and the sale of the private
placement units will not be released from the trust account until the earliest of (i) the completion of our initial business combination,
(ii) the redemption of our public shares if we are unable to complete the initial business combination within 24 months from the closing
of the initial public offering or by such earlier liquidation date as the Company’s board of directors may approve (the “Completion
Window”), subject to applicable law, or (iii) the redemption of our public shares properly submitted in connection with a shareholder
vote to amend our amended and restated memorandum and articles of association to (A) modify the substance or timing of our obligation
to allow redemption in connection with the initial business combination or to redeem 100% of our public shares if we have not consummated
an initial business combination within the Completion Window or (B) with respect to 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