Company: BLUWU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024010
Chunk: 86

Company: Blue Water Acquisition Corp. III
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 86
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 of the
consummation of an initial Business Combination, two-thirds) of the votes cast by such shareholders as, being entitled to do so, vote
in person or, where proxies are allowed, by proxy at the applicable general meeting of the Company.

Note
9 – Fair Value Measurements

The
Company performed a non-recurring fair value measurement on the Public Warrants on date of the consummation of the Initial Public Offering
to determine the allocation of the proceeds from the Units issued in the Initial Public Offering between the Class A ordinary shares
and the Public Warrants. The Company applied the residual allocation method, first by assigning the value of the Warrants and then deriving
the value of the Class A ordinary shares from the $10.00 Unit price.

The
fair value of the Public Warrants as of July 11, 2025, was $3,340,119, or $0.26 per Public Warrant. The fair value of Public Warrants
was determined using Black-Scholes Simulation Model. The Public Warrants have been classified within shareholders’ deficit and
will not require remeasurement after issuance. The following table presents the quantitative information regarding market assumptions
used in the valuation of the Public Warrants:

 Schedule
of Quantitative Information Regarding Market Assumption

    June 11, 2025 
  
    Implied ordinary share price 
    $9.87 
  
    Exercise price 
    $11.50 
  
    Simulation term (years) 
     6.50 
  
    Risk-free rate 
     4.16%
  
    Selected volatility 
     2.70%
  
    Calculated value per warrant 
    $0.26 
  
    Market adjustment 
     23.53%

Note
10 — Subsequent Events

The
Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date that the financial statement
was available to be issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment
or disclosure in the financial statement, other than the below.

On July 28, 2025, the Company announced that, on or about July 31, 2025,
the holders of the Company’s Units may elect to separately trade the Class A ordinary shares and warrants included in the Units.

16 

Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Unless
otherwise stated or the context otherwise requires, references in this