Fortune Rise Acquisition Corp. (NASDAQ: FRLA) announced this afternoon that it has signed a non-binding letter of intent (LOI) to combine with water fintech startup, Water On Demand (WODI).
Today’s LOI comes just a week after Fortune Rise announced that its sponsor had entered into and closed a membership interest purchase and transfer agreement with the water fintech company pursuant to which WODI purchased 100% of the membership interest of the sponsor. The sponsor holds 2,343,750 shares out of 2,443,750 shares of the issued and outstanding shares of Class B Common Stock of Fortune Rise. The purchase price for the membership interests was $403,516.61.
Water On Demand, a subsidiary of OriginClear (OTC Pink: OCLN), enables clean water to become an investable asset, open to main street investors, with the potential for generational royalties.
Under the LOI, FRLA proposed to acquire all of the outstanding securities of WODI, based on certain material financial and business terms and conditions being met. Additionally, FRLA will acquire 100% of the outstanding equity securities of WODI and in return, WODI equity holders are to receive shares of common stock of FRLA and any outstanding options and warrants will be assumed by FRLA in accordance with their terms.
Fortune Rise kept details on the transaction to a minimum, but disclosed that the parties intend to work together in good faith with their respective advisors to agree on a structure for the business combination that is most expedient to the completion of the acquisition.
Fortune Rise priced its $85 million IPO in November 2021, and originally inked a $294 million deal with crypto mining business VCV Digital Technology in May 2022. However, the business combination was terminated just two months after the announcement.
Since FRLA’s deal is not at the “definitive agreement” stage, and is still just a non-binding LOI, SPACInsider will not consider this deal fully “announced”. As such, it will remain in the “Searching” category until a definitive agreement is signed.
Terms Tracker for the Week Ending October 25, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Finally, a little more SPAC action this week with no less than four IPOs priced. That brings October’s tally to seven IPOs with one more...
At the SPAC of Dawn The rebound of the growth companies that made up the SPAC class of 2021 has been one of the bigger stories of second half of 2024, but not all of the de-SPACs are feeling the love equally. Instead, in many new sectors that hit the public markets together as a...
DT Cloud (NASDAQ:DYCQ) has entered into a definitive agreement to combine with Maius Pharmaceutical at an equity value of $250 million. Shanghai-based Maius is a drug developer and researcher focused on small-molecule chemical treatments for different forms of cancer. The combined company is expected to trade on the Nasdaq once the deal is completed in...
Charlton Aria Acquisition Corporation announced the pricing of its $75 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “CHARU”, Thursday, October 24, 2024. The new SPAC plans to focus on industries that complement the management team’s and board of director’s background and network. The sponsor team for...
At the SPAC of Dawn As the market goes through a cooling period this week, new readouts for jobless claims and new home sales are set to hit later today. Jobless claims are of course something of a proxy indicator for SPACs as to when the Fed might continue to its rate-cutting process, while home...