Fortune Rise Acquisition Corporation Terminates Merger Agreement with Water On Demand, Inc. and Announces Subsequent Liquidation

Fortune Rise Acquisition Corporation (NASDAQ:FRLAU) recently disclosed in an 8-K filing with the Securities and Exchange Commission that the company had terminated its Business Combination Agreement with Water On Demand, Inc. This termination has led to the initiation of FRLAU’s dissolution and liquidation process.

The mutual agreement to terminate the Business Combination Agreement was reached between Fortune Rise Acquisition Corporation, a Delaware corporation, and Water On Demand, Inc., previously known as Progressive Water Treatment Inc., a Texas corporation. The termination became effective immediately, in accordance with the provisions outlined in Section 7.1(a) of the Business Combination Agreement dated October 24, 2023, and subsequently amended on February 6, 2024.

Following the termination of the Agreement, Fortune Rise Acquisition Corporation is now bound by its amended and restated certificate of incorporation, which stipulates that the company must complete its initial business combination by no later than May 5, 2025. However, with the revocation of the Business Combination Agreement and the failure to make the required monthly extension deposit by December 5, 2024, Fortune Rise Acquisition Corporation is now poised to commence its dissolution and liquidation procedures.

The dissolution and liquidation process outlined by Fortune Rise Acquisition Corporation involves ceasing all operational activities, redeeming 100% of the Offering Shares, and subsequently liquidating the company. The per-share redemption price for the Class A common stock as of December 11, 2024, was estimated to be approximately $11.94, subject to further adjustments. It was noted that there would be no redemption rights or liquidating distributions applicable to FRLAU’s warrants, rendering them worthless.

After the completion of the November Redemptions, the balance of Fortune Rise Acquisition Corporation’s trust account was reported to be approximately $10.0 million, with over 843,000 remaining public shares as of December 11, 2024. The company mentioned that taxes due for 2023 and 2024 would be settled, and the remaining funds would be distributed to the appropriate shareholders.

As of December 6, 2024, Fortune Rise Acquisition Corporation ceased all operations, except those essential for winding up its business. A press release issued by the company on December 16, 2024, addressed the termination of the Business Combination Agreement and the subsequent liquidation process in more detail.

Fortune Rise Acquisition Corporation has emphasized a commitment to adhering to its obligations under applicable law during the dissolution and liquidation stages. The company has yet to make any further statements regarding its future plans or potential activities post-liquidation.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Fortune Rise Acquisition’s 8K filing here.

Fortune Rise Acquisition Company Profile

Fortune Rise Acquisition Corporation does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2021 and is based in Clearwater, Florida.