Company: BLUWU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024010
Chunk: 6

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 6
---
 have not been determined and no written agreements exist with respect to such 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.

19 

Off-Balance
Sheet Arrangements

As
of June 30, 2025, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K and did not have
any commitments or contractual obligations. No unaudited quarterly operating data is included in this report as we have not conducted
any operations to date.

Contractual
Obligations

We
do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities as of June 30, 2025 or
December 31, 2024.

Pursuant to the underwriting agreement for our initial
public offering, the underwriters are entitled to a deferred underwriting discount of 3.50% of the gross proceeds of the initial public
offering held in the trust account, or $8,855,000 in the aggregate, payable to BTIG, LLC to be deposited in the trust account and released
to BTIG, LLC only upon the completion of an initial business combination. The deferred underwriting commissions will be payable as follows:
(i) $0.30 per Unit sold in the initial public offering will be paid to BTIG, LLC in cash upon the closing of the initial business combination
and (ii) $0.05 per Unit sold in the initial public offering will be payable to BTIG, LLC in cash, provided that the Company and the Sponsor
have the right, in the Company and the Sponsor’s discretion, to reallocate any portion of the Allocable Amount to third parties
not participating in the initial public offering (but who are members of FINRA) that assist the Company in consummating the initial business
combination.

We have entered into an administrative services agreement with an affiliate
of the Sponsor pursuant to which we are required to pay $10,000 per month for office space, utilities, and secretarial and administrative
services, commencing on effective date of the initial public offering, through the earlier of our initial business combination and our
liquidation.

Commitments
and Conting