Fortune Rise Acquisition Corporation Receives November 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 November 5, 2024, to December 5, 2024. This extension was facilitated by Water On Demand Inc., a subsidiary of OriginClear Inc. and owner of Fortune Rise Sponsor , which deposited $50,590.98 ($0.06 per public share) into FRLA's trust account. The contribution was made as a non-interest bearing loan, repayable upon either the completion of an initial business combination or company liquidation. This is the first of six permitted monthly extensions following amendments made in November 2024.

Positive

• Additional funding of $50,590.98 ($0.06 per public share) added to trust account
• Extended timeline provides more opportunity to complete business combination
• Option for five more monthly extensions available

Negative

• Need for extension suggests delays in completing initial business combination
• Additional loan increases financial obligations

Insights

Financial Analyst

This SPAC extension payment represents a routine administrative action. The $50,590.98 deposit ($0.06 per share) provides Fortune Rise Acquisition an additional month until December 5, 2024, to complete a business combination. While the extension prevents immediate liquidation, no specific target or deal terms are disclosed. The company has five more monthly extensions available, suggesting potential challenges in finalizing a merger target. The small size of the SPAC ($71.7M market cap) and involvement with a penny stock company (OriginClear) warrant careful investor scrutiny. The non-interest bearing nature of the extension loan indicates potential pressure on the sponsor's resources.

CLEARWATER, FL / ACCESSWIRE / November 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 $50,590.98 (representing an additional $0.06 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 November 5, 2024 to December 5, 2024. The extension is the first of the six one-month extensions permitted under the Company's governing documents, as amended in November 2024.

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 $0.06 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 business combination?

The new deadline is December 5, 2024, extended from November 5, 2024.

How much did Water On Demand Inc. deposit for FRLA's extension?

Water On Demand Inc. deposited $50,590.98, representing $0.06 per public share.

How many more monthly extensions can FRLA request after November 2024?

FRLA can request up to five more monthly extensions, as this was the first of six permitted extensions.

What happens to the extension funds deposited into FRLA's trust account?

The funds increase the pro rata portion available to shareholders in case of a business combination, liquidation, or other redemption event.