OriginClear Subsidiary Water On Demand, Inc. and Fortune Rise Acquisition Corporation Agree to Terminate Business Combination Agreement
OriginClear (OCLN) announced that its subsidiary, Water On Demand Inc. (WODI), has terminated its Business Combination Agreement with Fortune Rise Acquisition (FRLA) dated October 23, 2023. The termination, effective December 12, 2024, was due to ongoing delays in S-4 Registration Statement registration, which could have pushed the closing date to March 2025 or later, resulting in additional costs and market uncertainties.
Following this development, WODI plans to resume its previously paused Regulation A offering. The company aims to focus on expanding Water On Demand operations and growing its water-as-a-service business in target markets, addressing critical infrastructure needs in the U.S. water industry.
OriginClear (OCLN) ha annunciato che la sua filiale, Water On Demand Inc. (WODI), ha terminato il suo Accordo di Combinazione Aziendale con Fortune Rise Acquisition (FRLA) datato 23 ottobre 2023. La risoluzione, effettiva dal 12 dicembre 2024, è stata causata da ritardi persistenti nella registrazione della Dichiarazione di Registrazione S-4, che avrebbero potuto rinviare la data di chiusura a marzo 2025 o oltre, comportando costi aggiuntivi e incertezze di mercato.
In seguito a questo sviluppo, WODI prevede di riprendere la sua offerta di Regolamento A precedentemente sospesa. L'azienda mira a concentrarsi sull'espansione delle operazioni di Water On Demand e alla crescita della sua attività di acqua come servizio nei mercati target, affrontando le esigenze infrastrutturali critiche dell'industria idrica statunitense.
OriginClear (OCLN) anunció que su filial, Water On Demand Inc. (WODI), ha terminado su Acuerdo de Combinación de Negocios con Fortune Rise Acquisition (FRLA) fechado el 23 de octubre de 2023. La terminación, efectiva el 12 de diciembre de 2024, se debió a retrasos continuos en el registro de la Declaración de Registro S-4, lo que podría haber retrasado la fecha de cierre hasta marzo de 2025 o más tarde, lo que resultaría en costos adicionales y incertidumbres en el mercado.
Tras este desarrollo, WODI planea reanudar su oferta de Regulación A que había sido pausada previamente. La empresa tiene como objetivo centrarse en la expansión de las operaciones de Water On Demand y en el crecimiento de su negocio de agua como servicio en los mercados objetivo, abordando las necesidades críticas de infraestructura en la industria del agua de EE. UU.
OriginClear (OCLN)는 자회사인 Water On Demand Inc. (WODI)가 2023년 10월 23일자 Fortune Rise Acquisition (FRLA)와의 사업 결합 계약을 종료했다고 발표했습니다. 2024년 12월 12일에 발효되는 이 종료는 S-4 등록 서류의 등록 지연으로 인해 발생했으며, 이는 마감일을 2025년 3월 또는 그 이후로 미룰 수 있어 추가 비용과 시장 불확실성을 초래할 수 있었습니다.
이와 같은 개발이 있은 후, WODI는 이전에 중단된 규제 A 제안을 재개할 계획입니다. 회사는 Water On Demand 운영 확장에 집중하고, 미국 수자원 산업의 중요한 인프라 요구를 해결하기 위해 목표 시장에서 물 서비스를 성장시키는 것을 목표로 하고 있습니다.
OriginClear (OCLN) a annoncé que sa filiale, Water On Demand Inc. (WODI), a résilié son Accord de Combinaison Commerciale avec Fortune Rise Acquisition (FRLA) daté du 23 octobre 2023. La résiliation, qui prend effet le 12 décembre 2024, est due à des retards continus dans l'enregistrement de la Déclaration d'Enregistrement S-4, ce qui aurait pu repousser la date de closing à mars 2025 ou plus tard, entraînant des coûts supplémentaires et des incertitudes sur le marché.
Suite à ce développement, WODI prévoit de reprendre son offre de Réglementation A précédemment suspendue. L'entreprise vise à se concentrer sur l'expansion des opérations de Water On Demand et à développer son activité d'eau comme service sur les marchés cibles, répondant aux besoins d'infrastructure critiques de l'industrie de l'eau aux États-Unis.
OriginClear (OCLN) hat bekannt gegeben, dass ihre Tochtergesellschaft Water On Demand Inc. (WODI) ihre Geschäfts-Combining-Vereinbarung mit Fortune Rise Acquisition (FRLA) vom 23. Oktober 2023 beendet hat. Die Beendigung, die am 12. Dezember 2024 wirksam wird, erfolgte aufgrund anhaltender Verzögerungen bei der Registrierung der S-4-Registrierungserklärung, die das Abschlussdatum auf März 2025 oder später verschieben könnte und zusätzliche Kosten sowie Marktunsicherheiten zur Folge haben könnte.
Nach dieser Entwicklung plant WODI, das zuvor pausierte Regulation-A-Angebot wieder aufzunehmen. Das Unternehmen will sich darauf konzentrieren, die Operationen von Water On Demand auszubauen und sein Geschäft mit Wasser als Dienstleistung in den Zielmärkten zu erweitern, um die kritischen Infrastrukturbedürfnisse der Wasserindustrie in den USA zu adressieren.
- Company can now redirect resources to core business operations
- Plans to resume Regulation A+ offering, providing an alternative funding pathway
- Maintains focus on growing water-as-a-service business without merger complexities
- Loss of potential public listing opportunity through SPAC merger
- Incurred costs related to failed merger attempt
- Delayed capital raising efforts during merger preparation period
OriginClear, Inc. has notified Fortune Rise Acquisition Corporation (“FRLA”) that its privately-held subsidiary, Water On Demand Inc. (“WODI”), is terminating the Business Combination Agreement dated October 23, 2023. The planned business combination was anticipated to have resulted in WODI becoming a publicly listed company. WODI plans to continue its offering under Regulation A, which was previously paused in light of the business combination.
Termination of the Merger Agreement
On December 12, 2024, the FRLA and WODI entered into a Mutual Termination Agreement, terminating the Business Combination Agreement, effective immediately, in accordance with the provisions of Section 7.1(a) thereof. Since the date the Business Combination Agreement was signed, the registration of the S-4 Registration Statement faced ongoing delays which resulted in continued costs and uncertainties.
“We have determined that delays in the registration process could push the potential closing date of the business combination to March 2025 or later, which would result in significant additional costs and expenses, listing concerns and market uncertainty, which are potentially damaging to the interests of existing shareholders.”
“Although we are disappointed in this result, we believe this presents a great opportunity to pivot and focus capital and other resources on expanding the Water On Demand operations and growing the business” stated Eckelberry. “Other companies in the water-as-a-service space have had great success and notable exits”, Eckelberry continued, “and we believe that Water On Demand is in line to compete with these companies. Although there is no guarantee of success or comparable returns, we believe there is precedent for opportunity for Water On Demand and its shareholders.”
“With sewer main breaks and infrastructure failures happening daily, the
WODI plans to continue its offering under Regulation A, which was previously paused in light of the business combination. Eckelberry continued. “Regulation A+ is an established pathway that we feel we can better control. The Board believes that this decision preserves shareholder value and keeps us on a path to making a major difference in the water industry.”
About OriginClear
OriginClear® is the Clean Water Innovation Hub™, dedicated to launching new ventures such as Water On Demand™ and Modular Water Systems™ – a leader in onsite, prefabricated systems made with sophisticated materials that can last decades. OriginClear subsidiary Progressive Water Treatment merged with Water On Demand and Modular Water Systems in a combination known as Water On Demand Inc., intended to create better enterprise value for a potential merger. Tune in on OriginClear's Legends of Water monthly broadcast by signing up at www.originclear.com/ceo.
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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.
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Source: OriginClear, Inc.
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