Company: RAIN
Filing Date: 2025-01-31
Form Type: S-1
Source: 0001213900-25-008536
Chunk: 109

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-01-31
Form: S-1
Chunk 109
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 expects to close on the remaining $150,000 of investment irrevocably committed pursuant to the PIPE Subscription Agreements in the near term. Additionally, the Company has $7 million available which
may be borrowed under the Commitment from an affiliate of Harry You, subject to the terms and conditions of the Loan Agreement. The Company
may seek additional sources of capital, but there can be no assurance that additional financing will be available to the Company on favorable
terms or at all. See “Risk Factors – the Company will need additional capital to pursue its business objectives and respond to business opportunities, challenges or unforeseen circumstances, and it cannot be sure that additional financing will be available.”

RET’s primary use of
proceeds from the Business Combination will be to support the development and organic growth of its ionization rainfall generation platform.
Additional water technologies can be acquired or licensed provided a significant margin of error is maintained on reaching profitability
on the ionization rainfall generation.

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Approximately equal components of investment are expected in building RET’s sales and marketing infrastructure, as its technical (hardware, software, physics and engineering) and operations (client, install, maintenance and manufacturing) talent. Attracting and retaining the leading talent in the world, and manufacturing and installing its hardware will be the primary use of capital through breakeven.

Additional rainfall generation technologies, as well as adjacent desalination, wastewater treatment, water purification, mineral extraction, cloudseeding and other water generation services may be considered for inorganic expansion.

RET management estimates
$40 million capital requirements for its five-year business plan. Prior to the closing of the Business Combination, RET management determined
that RET would be able to execute on its operating plan for at least the next 12 months following the Closing if RET received at least
$10 million in proceeds from the Business Combination, after giving effect to redemptions of Public Shares but before the payment of
transaction expenses. Because the Company received $9 million in gross proceeds from the Business Combination before the payment of transaction
expenses, the Company has adjusted production ramp-up in order to align the associated cash requirements, especially for working capital,
with actual timing and/or realized proceeds of the Business Combination. Adjustments have been made by reducing or shifting planned operational
costs and R&D investments, on a short-term basis, until additional funding is obtained. RET management has determined that the RET
system’s design is complete, requiring no additional R&D in the near-term, and that