Company: BLUWU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024010
Chunk: 135

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 135
---
 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 funds as may be required. If we complete
our initial business combination, we would repay such loaned amounts. In the event that our initial business combination does not close,
we may use amounts held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used for
such repayment. Up to $1,500,000 of such loans may be convertible into private placement units of the post business combination entity
at a price of $10.00 per unit at the option of the lender. Such units would be identical to the private placement units. The terms of
such loans, if any, 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