Water On Demand and Fortune Rise End Business Agreement

Business Combination Agreement Termination

OriginClear, Inc. (OTC: Other:OCLN) has recently announced a significant development regarding its subsidiary, Water On Demand, Inc. (WODI), and Fortune Rise Acquisition Corporation (FRLA). The two companies have agreed to terminate their Business Combination Agreement, originally set to take effect following certain regulatory processes. This decision marks a pivotal moment for WODI, which was aiming to enhance its status as a publicly listed company.

Reasons Behind the Termination

The termination follows a Mutual Termination Agreement executed by both parties, effective immediately. This decision was precipitated by ongoing delays associated with the registration process of the S-4 Registration Statement, which led to rising costs and uncertainties. The prospective timeline for closing the intended business combination was pushed further out, leading to concerns over unrealistic expectations for existing shareholders.

Delays and Financial Concerns

In a statement about the situation, the management noted, "We have determined that delays in the registration process could push the potential closing date of the business combination to a distant future, which would result in significant additional costs and expenses, along with adverse implications for shareholder value." Such delays can be detrimental to a company’s market reputation and to the confidence of its investors.

Pursuing New Opportunities

Despite the setback, Water On Demand views this development as an opportunity to redirect its resources. Eckelberry, a representative from the company stated, “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.” Eckelberry also highlighted the success of other companies in the water-as-a-service sector as a source of inspiration for his firm.

Future of Water On Demand

WODI intends to continue its offerings under Regulation A, which had previously been paused due to the merger discussions. This regulatory pathway is seen as an opportunity for greater control over operations while maintaining compliance and shareholder interests. “The Board believes that this decision preserves shareholder value and keeps us on a path to making a major difference in the water industry,” Eckelberry asserted.

Addressing Infrastructure Challenges

The need for innovative water management solutions has never been more crucial. Eckelberry pointed out the pressing issue of infrastructure failures that are routine, stating, “With sewer main breaks happening daily, the U.S. desperately needs to address this impending problem.” Furthermore, he expressed a strong belief that water as a managed service is the way of the future, and WODI is committed to promoting this approach in its target markets.

About OriginClear

OriginClear is recognized as a leader in clean water innovation, specifically through initiatives like Water On Demand and Modular Water Systems. These ventures aim to offer advanced onsite solutions designed to endure for decades using quality materials. The recent merger between WODI and Progressive Water Treatment represents a strategic step towards enhancing the enterprise value for future deals. A closer look at their operations shows a commitment to providing effective water treatment solutions that benefit communities and industries alike.

Frequently Asked Questions

What led to the termination of the business combination agreement?

The termination was primarily due to ongoing delays in the registration process, leading to increased costs and uncertainty for the shareholders.

How does this affect Water On Demand’s future?

Water On Demand plans to focus on expanding operations and continuing its offerings under Regulation A to strengthen its market position.

Will Water On Demand still pursue public listing?

While the immediate plans for a public listing are paused, the company remains optimistic about its growth and future opportunities in the market.

What are the challenges facing the water industry?

The water industry faces significant challenges, including aging infrastructure and a need for innovative managed services to address resource management efficiently.

How can investors learn more about OriginClear’s initiatives?

Investors interested in learning more can follow OriginClear’s updates through their official channels and newsletters, which provide insights into their ongoing projects and strategies.

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