Fortune Rise Acquisition Corporation Receives August Monthly Extension From Sponsor Affiliate to Complete its Initial Business Combination

Rhea-AI Summary

Fortune Rise Acquisition (Nasdaq: FRLA) has received a one-month extension to complete its initial business combination, extending the deadline from August 5, 2024, to September 5, 2024. This extension, the tenth of twelve permitted, was facilitated by a $100,000 deposit from Water On Demand Inc., a subsidiary of OriginClear, Inc. (OTC: OCLN) and owner of FRLA's sponsor.

The deposit, equivalent to $0.032 per public share, increases the pro rata funds available in the trust account. This non-interest bearing loan will be repaid upon the earlier of the business combination's consummation or the company's liquidation. Ryan Spick, CFO of FRLA, emphasized that this extension provides additional time to advance their business combination efforts and reaffirmed their commitment to building a significant technology company post-combination.

Positive

• Extension provides more time to complete initial business combination
• Additional $100,000 ($0.032 per share) deposited into trust account for stockholders' benefit
• Increased pro rata funds available in trust account

Negative

• Tenth extension out of twelve permitted, indicating potential delays in finding suitable business combination
• Additional funding required to extend deadline, potentially impacting available capital

CLEARWATER, FL / ACCESSWIRE / August 7, 2024 / Fortune Rise Acquisition Corporation (Nasdaq:FRLA) ("FRLA" or the "Company") today announced that Water On Demand Inc., a privately-held subsidiary of OriginClear, Inc. (OTC: Other:OCLN) ("OCLN") and owner of its sponsor, Fortune Rise Sponsor LLC (the "Sponsor"), has deposited the required $100,000 (representing an additional $0.032 per public share) into the Company's trust account for the benefit of its valued public stockholders which provides a one-month extension to complete the Company's initial business combination. This additional contribution extends the date by which the Company has to complete its initial business combination for an additional one-month extension from August 5, 2024 to September 5, 2024. The extension is the tenth of the twelve one-month extensions permitted under the Company's governing documents, as amended in October 2023.

Such contribution effectively increases the pro rata portion of the funds available in the Company's trust account in the event of the consummation of an initial business combination, liquidation, or other redemption event, by $0.032 per share. The contribution was funded as a non-interest bearing loan that will either be paid upon earlier of consummation of an initial business combination or the Company's liquidation.

Ryan Spick, CFO of FRLA, stated, "OriginClear's subsidiary, Water On Demand, Inc., which owns the Sponsor, has made the required deposit for the benefit of the stockholders of Fortune Rise Acquisition Corporation which provides a one-month extension to complete our initial business combination. These funds provide for an additional one-month extension which gives us additional time to advance our business combination efforts. Once the business combination is complete, we remain committed to building the next great technology company and generating significant shareholder value."

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

FAQ

What is the new deadline for Fortune Rise Acquisition (FRLA) to complete its initial business combination?

The new deadline for FRLA to complete its initial business combination is September 5, 2024, extended from the previous date of August 5, 2024.

How much additional funding was provided to extend FRLA's deadline?

Water On Demand Inc. deposited $100,000, which equates to $0.032 per public share, into FRLA's trust account to extend the deadline.

How many extensions has FRLA used so far for its initial business combination?

FRLA has used ten out of the twelve one-month extensions permitted under its governing documents, as amended in October 2023.

What happens to the $100,000 deposit made by Water On Demand Inc. to FRLA?

The deposit is a non-interest bearing loan that will be repaid upon the earlier of the consummation of an initial business combination or FRLA's liquidation.