Company: BACC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001185185-25-000948
Chunk: 169

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-12
Form: 10-Q
Item: Part II, Item 1A
Chunk 169
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 cannot assure you that the measures we have taken to date, or any measures we may take in
the future, will be sufficient to avoid potential future material weaknesses.

Changes in international trade policies, tariffs
and treaties affecting imports and exports may have a material adverse effect on our search for an initial Business Combination target
or the performance or business prospects of a post-Business Combination company.

There have recently been significant changes to international
trade policies and tariffs affecting imports and exports. Any significant increases in tariffs on goods or materials or other changes
in trade policy could negatively affect our search for a target and/or our ability to complete our initial Business Combination.

Recently, the U.S. has implemented a range of new
tariffs and increases to existing tariffs.  In response to the “tariffs announced by the U.S., other countries have imposed,
are considering imposing, and may in the future impose new or increased tariffs on certain exports from the United States. There is currently
significant uncertainty about the future relationship between the United States and other countries with respect to trade policies, taxes,
government regulations and tariffs. and we cannot predict whether, and to what extent, current tariffs will continue or trade policies
will change in the future.

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Tariffs, or the threat of tariffs or increased tariffs,
could have a significant negative impact on certain businesses (either due to domestic businesses’ reliance on imported goods or
dependence on access to foreign markets, or foreign businesses’ reliance on sales into the United States). In addition, retaliatory
tariffs could have a significant negative impact on foreign businesses that rely on imports from the United States, and domestic businesses
that rely on exporting goods internationally. These tariffs and threats of tariffs and other potential trade policy changes could
negatively affect the attractiveness of certain initial Business Combination targets, or lead to material adverse effects on a post-Business
Combination company. Among other things, historical financial performance of companies affected by trade policies and/or tariffs may not
provide useful guidance as to the future performance of such companies, because future financial performance of those companies may be
materially affected by new U.S. tariffs or foreign retaliatory tariffs, or other changes to trade policies. The business prospects of
a particular target for a Business Combination could change even after we enter into a Business Combination agreement, as a result of
tariffs or the threat of tariffs that may have a material impact on that target's business, and it may be costly or impractical for us
to terminate