Company: BACC
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001185185-25-001689
Chunk: 23

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 23
---
 continuing the company in a jurisdiction outside the Cayman Islands (including any special resolution required
to amend our constitutional documents or to adopt new constitutional documents, in each case, as a result of our approving a transfer
by way of continuation in a jurisdiction outside the Cayman Islands).

Promissory
Note — Related Party

The
Sponsor has agreed to loan the Company an aggregate of up to $300,000 (the “Promissory Note”) to be used for a portion of
the expenses of the Initial Public Offering. The Promissory Note is non-interest bearing, unsecured and due at the earlier of December
31, 2025 or the closing of the Initial Public Offering. The loan was repaid out of the $747,500 of offering proceeds that has been allocated
to the payment of offering expenses. As of June 16, 2025, the date the Company consummated its Initial Public Offering, the Company had
borrowed $193,236 under the Promissory Note. On June 16, 2025, the Company paid $203,557 to the Sponsor, resulting in an overpayment
of $10,321 that is recorded as a related party receivable as of September 30, 2025. The Promissory Note was repaid in full and is no
longer available to the Company as of September 30, 2025.

Administrative
Services Agreement 

Commencing on the effective date of the Initial
Public Offering, the Company entered into an agreement with Blue Holdings Management LLC, the managing member of our Sponsor, to pay an
aggregate of $5,000 per month for office space, utilities, and secretarial and administrative support. These monthly fees will cease upon
the completion of the initial Business Combination or the liquidation of the Company. For the three months ended September 30, 2025
and for the period from February 10, 2025 (inception) through September 30, 2025, the Company recorded $15,500 and $17,833 to administrative
services fee – related party on the statement of operations, respectively and has paid $12,833 as of September 30, 2025, resulting
in an accrual of $5,000 to administrative services fee payable – related party on the balance sheet.

Working
Capital Loans 

In
order to finance transaction costs in connection with a Business Combination, the Sponsor, BHM, certain of the