Company: BACC
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001185185-25-000948
Chunk: 37

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 to and from the offices, plants or similar
locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective
target businesses, and structure, negotiate and complete a Business Combination.

We do not believe we will need to raise additional
funds following the Initial Public Offering in order to meet the expenditures required for operating our business prior to our initial
Business Combination. However, if our estimates of the costs of identifying a target business, undertaking in-depth due diligence and
negotiating an initial Business Combination are less than the actual amount necessary to do so, we may have insufficient funds available
to operate 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 Working Capital Loans as may be
required. If we complete our initial Business Combination, we would repay such Working Capital Loans. In the event that our initial
Business Combination does not close, we may use amounts held outside the Trust Account to repay such Working Capital Loans, but no
proceeds from our Trust Account would be used for such repayment. Up to $1,500,000 of such Working Capital Loans may be convertible
into 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 Working Capital Loans, if any, have not been determined and no written
agreements exist with respect to such Working Capital 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.

20

We expect our primary liquidity requirements during
the first twelve months of our Combination Period to include approximately $225,000 for legal, accounting, due diligence, travel and other
expenses associated with structuring, negotiating and documenting successful business combinations; $200,000 for legal and accounting
fees related to regulatory reporting requirements; $85,000 for Nasdaq and other regulatory fees; $60,000 for office space and administrative
services; approximately $400,000 for directors’ and officers’ liability insurance;