BLUWW

Blue Water Acquisition Corp. III Warrants represent the right to purchase ordinary shares of Blue Water Acquisition Corp. III at a predetermined exercise price, typically $11.50 per share. These warrants were issued as part of the SPAC's initial public offering, either bundled in units with ordinary shares or distributed to sponsors and early investors. The warrants provide holders with leveraged exposure to the potential success of the business combination that Blue Water Acquisition Corp. III will pursue, becoming valuable if the post-combination stock price exceeds the exercise price. The warrants typically become exercisable following completion of the SPAC's business combination with a target company and have an expiration period, 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 ordinary 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 ordinary shares if the combined 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, particularly those with confidence in the Blue Water sponsor team's ability to identify and execute attractive business combinations. As the third SPAC vehicle from the Blue Water sponsors, the warrants may attract investors who have positive views on the team's track record from previous transactions. 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 Blue Water Acquisition Corp. III successfully identifies and completes a business combination with a quality target that performs well as a public company, warrant holders could realize substantial gains. However, if the stock price remains below $11.50 through expiration, the warrants become worthless.