Fortune Rise Acquisition Corporation Receives June Monthly Extension from Sponsor Affiliate to Complete Its Initial Business Combination

Rhea-AI Summary

Fortune Rise Acquisition (NASDAQ:FRLA) announced a one-month extension to complete its initial business combination.

This extension, provided by Water On Demand, a subsidiary of OriginClear (OTC: OCLN), involves a $100,000 deposit into the Company's trust account.

The new deadline is July 5, 2024, marking the eighth of twelve permissible one-month extensions under FRLA's governing documents.

This contribution increases the pro rata portion of the trust funds by $0.032 per share, benefiting public stockholders.

The deposit is a non-interest bearing loan, repayable upon the business combination's completion or the Company's liquidation.

FRLA's CFO, Ryan Spick, highlighted the importance of this extension in advancing their business combination efforts and creating significant shareholder value.

Positive

• The $100,000 deposit extends the deadline to complete the business combination, providing additional time for the Company.
• Funds increase the pro rata portion available to public stockholders by $0.032 per share.
• Extension is the eighth of twelve one-month extensions allowed, indicating structured planning.
• Loan terms are favorable as it is non-interest bearing.

Negative

• The extension indicates delays in completing the initial business combination.
• This is the eighth extension, raising concerns about the ability to complete the business combination timely.
• Increasing reliance on sponsor contributions can indicate financial strain or difficulties.

CLEARWATER, FL / ACCESSWIRE / June 6, 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 June 5, 2024 to July 5, 2024. The extension is the eighth 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 's (FRLA) business combination?

The new deadline is July 5, 2024, after a one-month extension.

How much did Water On Demand deposit for the extension of FRLA's business combination?

Water On Demand deposited $100,000 for the extension.

How does the extension affect FRLA public stockholders?

The extension increases the pro rata portion of trust funds by $0.032 per share for public stockholders.

Who funded the extension deposit for FRLA?

The extension deposit was funded by Water On Demand, a subsidiary of OriginClear.

How many extensions has FRLA utilized for the business combination?

FRLA has utilized eight of the twelve one-month extensions allowed.