Announcement Regarding the Progress of Fortune Rise Acquisition Corporation’s Proposed Business Combination with Water On Demand, Inc.
Fortune Rise Acquisition (NASDAQ:FRLA) is progressing with its planned merger with Water On Demand Inc. (WODI), a subsidiary of OriginClear. FRLA stockholders have approved an extension to complete the de-SPAC transaction from November 5, 2024, to May 5, 2025. Due to Nasdaq rules requiring SPAC delisting after three years, FRLA will be delisted effective November 11, 2024. The Sponsor is working to transition FRLA to OTC trading while WODI's Nasdaq application for the post-combination company continues. The Business Combination Agreement, dated October 23, 2023, remains in effect.
Fortune Rise Acquisition (NASDAQ:FRLA) sta proseguendo con la fusione pianificata con Water On Demand Inc. (WODI), una controllata di OriginClear. Gli azionisti di FRLA hanno approvato un'estensione per completare la transazione de-SPAC dal 5 novembre 2024 al 5 maggio 2025. A causa delle regole del Nasdaq che richiedono il delisting delle SPAC dopo tre anni, FRLA sarà delistata a partire dall'11 novembre 2024. Lo Sponsor sta lavorando per passare a un trading OTC mentre la domanda di Nasdaq di WODI per la società post-combinazione continua. L'Accordo di Combinazione Aziendale, datato 23 ottobre 2023, rimane in vigore.
Fortune Rise Acquisition (NASDAQ:FRLA) avanza con su fusión planificada con Water On Demand Inc. (WODI), una subsidiaria de OriginClear. Los accionistas de FRLA han aprobado una extensión para completar la transacción de de-SPAC desde el 5 de noviembre de 2024 hasta el 5 de mayo de 2025. Debido a las reglas de Nasdaq que exigen el desliste de las SPAC después de tres años, FRLA será deslistada a partir del 11 de noviembre de 2024. El patrocinador está trabajando para hacer la transición de FRLA al comercio en OTC mientras la solicitud de Nasdaq de WODI para la compañía después de la combinación continúa. El Acuerdo de Combinación Empresarial, fechado el 23 de octubre de 2023, sigue en vigor.
Fortune Rise Acquisition (NASDAQ:FRLA)는 OriginClear의 자회사인 Water On Demand Inc. (WODI)와의 계획된 합병을 진행하고 있습니다. FRLA 주주들은 de-SPAC 거래를 2024년 11월 5일부터 2025년 5월 5일까지 완료하기 위한 연장을 승인했습니다. 3년 후 SPAC 상장 폐지를 요구하는 Nasdaq 규정 때문에 FRLA는 2024년 11월 11일부터 상장 폐지됩니다. 스폰서는 WODI의 합병 후 회사에 대한 Nasdaq 신청이 계속되는 동안 FRLA를 OTC 거래로 전환하기 위해 작업하고 있습니다. 2023년 10월 23일 날짜의 사업 결합 계약은 유효합니다.
Fortune Rise Acquisition (NASDAQ:FRLA) progresse avec sa fusion planifiée avec Water On Demand Inc. (WODI), une filiale d'OriginClear. Les actionnaires de FRLA ont approuvé une prolongation pour finaliser la transaction de de-SPAC, passant du 5 novembre 2024 au 5 mai 2025. En raison des règles du Nasdaq exigeant le delisting des SPAC après trois ans, FRLA sera radiée à compter du 11 novembre 2024. Le sponsor travaille à la transition de FRLA vers le commerce OTC tandis que la demande de Nasdaq de WODI pour l'entreprise post-combinaison se poursuit. L'accord de combinaison d'affaires, daté du 23 octobre 2023, reste en vigueur.
Fortune Rise Acquisition (NASDAQ:FRLA) ist dabei, die geplante Fusion mit Water On Demand Inc. (WODI), einer Tochtergesellschaft von OriginClear, voranzutreiben. Die Aktionäre von FRLA haben eine Verlängerung genehmigt, um die de-SPAC-Transaktion bis zum 5. Mai 2025 abzuschließen, anstatt am 5. November 2024. Aufgrund der Nasdaq-Regeln, die eine Delistung von SPACs nach drei Jahren verlangen, wird FRLA ab dem 11. November 2024 delistet. Der Sponsor arbeitet daran, FRLA in den OTC-Handel zu überführen, während der Nasdaq-Antrag von WODI für das nach der Fusion entstandene Unternehmen weiterhin besteht. Die am 23. Oktober 2023 datierte Geschäftskombinationsvereinbarung bleibt in Kraft.
- Business Combination Agreement remains active despite delisting
- Stockholders approved extension for merger completion to May 2025
- Orderly transition to OTC trading being arranged
- FRLA facing mandatory delisting from Nasdaq on November 11, 2024
- Merger completion delayed beyond original timeline
- Trading platform downgrade from Nasdaq to OTC markets
Insights
This development signals significant challenges in the SPAC merger process between FRLA and Water On Demand. The delisting from NASDAQ and transition to OTC markets is a concerning development that could impact liquidity and institutional investor access. The extension to May 2025 provides additional time but also indicates potential complications in meeting merger requirements.
The transaction structure faces increased complexity with FRLA's move to OTC while simultaneously working on WODI's separate NASDAQ listing application. This unusual arrangement creates uncertainty around the final outcome and potential shareholder value. The lack of clear timeline or specific progress metrics in the merger process adds to investor risk.
CLEARWATER, FL / ACCESSWIRE / November 6, 2024 / Fortune Rise Acquisition Corporation (NASDAQ:FRLA) ("FRLA" or the "Company") is working closely with Water On Demand Inc. ("WODI"), a privately-held subsidiary of OriginClear, Inc. (OTC PINK:OCLN) ("OCLN") and owner of its sponsor, Fortune Rise Sponsor LLC (the "Sponsor"), to complete the previously announced merger which is intended to result in WODI becoming a publicly listed company on Nasdaq pursuant to the Business Combination Agreement, dated October 23, 2023, among FRLA and WODI (as amended from time to time, the "Business Combination Agreement").
In a meeting held on November 4, 2024, FRLA stockholders approved a proposal to amend its amended and restated certificate of incorporation to extend the date by which FRLA must consummate a de-SPAC transaction from November 5, 2024 to up to May 5, 2025. It is understood that Nasdaq rules require the delisting of any SPAC after three years; however, the Business Combination Agreement remains in place and the process of qualifying WODI for Nasdaq continues.
In preparation for the planned delisting of FRLA effective November 11, 2024, the Sponsor is working to ensure that FRLA trades on the OTC market in an orderly fashion, while WODI's own Nasdaq application for the post-combination company proceeds in an orderly fashion.
"As we near the completion of this business combination, I wanted to express my admiration for the OCLN and WODI investors, who have stood by the process despite the delays," said Ron Pollack, Chairman of Fortune Rise Acquisition Corporation. "We believe we are coming to the final result of this effort, and I want to thank all concerned".
"With a sewer main break every other minute in the U.S. alone, it is high time we addressed our water situation," said Riggs Eckelberry, Chairman and CEO of OriginClear and Water On Demand. "We intend to use the Nasdaq platform as a way to enable a real solution to water quality in the U.S. and the rest of the world."
About Fortune Rise Acquisition Corporation
FRLA is a blank check company incorporated in February 2021 as a Delaware corporation formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
FRLA is a "shell company" as defined under the Exchange Act of 1934, as amended, because it has no operations and nominal assets consisting almost entirely of cash. FRLA will not generate any operating revenues until after the completion of its initial business combination, at the earliest. To date, FRLA's efforts have been limited to organizational activities and activities related to its initial public offering as well as the search for a prospective business combination target.
No Offer or Solicitation
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Safe Harbor Statement
Matters discussed in this release contain forward-looking statements. When used in this release, the words "anticipate," "believe," "estimate," "may," "intend," "expect," "plans" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein.
These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. Further information on the Company's risk factors is contained in the Company's quarterly and annual reports as filed with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason except as may be required under applicable law.
Contact Information:
Fortune Rise Acquisition Corporation
Ryan Spick
spickryan@gmail.com
SOURCE: Fortune Rise Acquisition Corporation
View the original press release on accesswire.com
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