Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 205

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 205
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 the RWT Founders or their permitted transferees collectively beneficially own more than 20% of
the number of shares of Class B Common Stock collectively held by them as of the Closing. Such rights include the right to fill vacancies
on Holdco’s board of directors (the “Board”), to call special meetings of shareholders, to take action by written consent
of the shareholders, and that amendments to the Holdco A&R Articles will require the affirmative vote of a majority of the shares
of Common Stock entitled to vote in lieu of two-thirds of the shares of Common Stock entitled to vote on the matter. Future transfers
by holders of Class B Common Stock will generally result in those shares converting to Class A Common Stock, subject to limited exceptions,
such as certain transfers effected for estate planning or charitable purposes. Further, the Class B Common Stock will automatically convert
into Class A Common Stock on the date that is 5 years after the Closing Date, or earlier in certain circumstances, including if the initial
holders thereof collectively cease to beneficially own at least twenty percent (20%) of the number of shares of Common Stock held by them
on the Closing Date, as more fully set forth in the Holdco A&R Articles.

The RWT Founders may have interests, with respect to their Common Stock
which are different from those of unaffiliated shareholders and the concentration of voting power among one or more of these stockholders
may have an adverse effect on the trading price of the Class A Common Stock.

In addition, this concentration of ownership might adversely affect
the market price of the Class A Common Stock by: (1) delaying, deferring or preventing a change of control; (2) impeding a merger, consolidation,
takeover or other Business Combination involving Holdco; or (3) discouraging a potential acquirer from making a tender offer or otherwise
attempting to obtain control of Holdco.

The Dual Class Structure may have the effect of concentrating
voting control with the holders of Class B Common Stock.

Holdco has a dual class stock structure in which
shares of Class A Common Stock each have one vote per share and shares of Class B Common Stock have fifteen votes per share. Immediately
after giving effect to the Business Combination, there were 7,471,678 shares of Class A Common Stock outstanding (7,528,761 shares after
giving effect to the additional PIPE closings on January 29, 2025 and February 6, 2025), 57,