Blue Water Acquisition Iii's Business Segments

Blue Water Acquisition Corp. III is a blank check company incorporated on November 1, 2024, in the Cayman Islands. The company has no material operations and was established to pursue a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization, or similar business combination ("Business Combination") with one or more businesses. While it may consider opportunities in any industry, it intends to focus on biotechnology, healthcare, and technology sectors. As of December 31, 2025, Blue Water Acquisition Corp. III had not commenced operations and had no operating revenues, generating only non-operating income from interest and dividends on cash and marketable securities. The company completed its initial public offering (IPO) on June 11, 2025, raising gross proceeds of $253 million through the sale of 25,300,000 units at $10.00 per unit. Each unit consisted of one Class A ordinary share and one-half of one redeemable warrant. Additionally, a private placement of 683,000 units was sold to the Prior Sponsor and BTIG, LLC, raising $6.83 million. Proceeds from the IPO and private placement were placed in a trust account to fund the initial Business Combination or to be returned to shareholders if no combination occurs within 24 months. The company has not yet selected a specific Business Combination target.

The Company operates within a single reporting segment encompassing its formation, Initial Public Offering, and the search for a suitable target for an initial business combination. This segment has not generated operating revenues to date. The Chief Financial Officer, serving as the chief operating decision maker (CODM), reviews the Company's overall assets, operating results, and financial metrics to allocate resources and assess financial performance. Performance evaluation by the CODM is based on net income or loss and total assets, including cash and marketable securities held in a Trust Account, to ensure adequate capital for completing a business combination or similar transaction within the designated period. Additionally, the CODM manages and forecasts cash flow to maintain compliance with contractual agreements and budgetary requirements.