Company: BLUWU
Filing Date: 2025-02-20
Form Type: S-1
Source: 0001493152-25-007630
Chunk: 163

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-02-20
Form: S-1
Chunk 163
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 ($3,500,000 in the aggregate (or $3,800,000 if the underwriters’         
 over-allotment option is exercised in full)) in a private placement that will close simultaneously with the closing of this offering. 
 The purchase of the non-managing sponsor membership interests is not contingent upon the participation in this offering or vice       
 versa.                                                                                                                                |

| 112 |

Because our sponsor acquired the founder shares at a nominal price, our public shareholders will incur immediate and substantial dilution upon the closing of this offering, assuming no value is ascribed to the warrants included in the units. Further, the Class A ordinary shares issuable in connection with the conversion of the founder shares may result in material dilution to our public shareholders due to the anti-dilution rights of our founder shares that may result in an issuance of Class A ordinary shares on a greater than one-to-one basis upon conversion. See the sections titled “ Risk Factors — Risks Relating to our Management Team — The nominal purchase price paid by our sponsor for the founder shares may result in significant dilution to the implied value of your public shares upon the consummation of our initial business combination, and our sponsor is likely to make a substantial profit on its investment in us in the event we consummate an initial business combination, even if the business combination causes the trading price of our ordinary shares to materially decline” and “Dilution.”In addition, the cashless exercise of the private placement warrants included in the private placement units purchased by our sponsor at the closing of this offering would increase the dilution to our public shareholders. Further, the conversion of any working capital loans into private placement units, as well as the cashless exercise of the private placement warrants that are issued as part of such units, would further increase the dilution to our public shareholders. Additionally, we will reimburse our sponsor or an affiliate of our sponsor in an amount equal to $10,000 per month for office space, utilities and secretarial and administrative support made available to us, as described elsewhere in this prospectus.

Pursuant to a letter agreement to be entered with us, each of our sponsor, directors and officers has agreed to restrictions on its ability to transfer, assign, or sell the founder shares and private placement units, as summarized in the table below.

| Subject Securities |     | Expiration                                                                                                                             
 Date                                                                                                                                   |     | Natural                                            
 Persons and                                        
 Entities Subject to                                
 Restrictions                                       |     | Exceptions                                                                                                                            
 to Transfer Restrictions                                                                                                              |
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