BIII.W

Black Spade Acquisition III Co Redeemable Warrants entitle holders to purchase Class A ordinary shares at an exercise price of $11.50 per share. Each whole warrant provides the right to acquire one Class A ordinary share at this strike price during a specified exercise period. These warrants were issued as part of Black Spade Acquisition III's initial public offering, either bundled in units with common shares or distributed to sponsors and early investors. The warrants offer leveraged exposure to the potential success of the business combination that Black Spade Acquisition III pursues. The warrants typically become exercisable following completion of the SPAC's business combination with a target company and have an expiration date, usually five years from the combination completion or earlier under certain circumstances such as if the stock price reaches specified levels for sustained periods. Unlike common shares, warrants do not provide voting rights or redemption rights during the pre-combination period. However, they offer potential for amplified percentage returns compared to holding common shares if the post-combination company's stock price appreciates significantly above the $11.50 exercise price. These financial instruments appeal to investors seeking higher-risk, higher-reward exposure to SPAC outcomes. The warrant value incorporates both intrinsic value (the amount by which the stock price exceeds the $11.50 exercise price) and time value (based on remaining time to expiration and expected stock volatility). If Black Spade Acquisition III successfully identifies and completes a business combination with an attractive target company that performs well as a public entity, warrant holders could realize substantial gains. However, if the stock price remains below $11.50 through the warrant's expiration, they become worthless. The investment thesis depends on the sponsor team's ability to source a quality target, negotiate favorable transaction terms, and support the combined company's success as a publicly traded entity. Investors should evaluate the management team's track record, target sector focus, and deal terms when assessing the warrant opportunity.