Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 50

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 50
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co’s share price regardless of Holdco’s business, prospects, financial conditions or results of operations.
A decline in the market price of Holdco’s securities also could adversely affect Holdco’s ability to issue additional securities
and Holdco’s ability to obtain additional financing in the future.

Inflationary pressures, increases in interest rates and other adverse
economic and market forces may contribute to potential downward pressures in market value of the Class A Common Stock. Additionally, any
of the risk factors discussed in this Annual Report could have a material adverse effect on your investment in Class A Common Stock may
trade at prices significantly below the price you paid for them. In such circumstances, the trading price of Class A Common Stock may
not recover and may experience a further decline.

30

The RWT Founders have substantial control over Holdco, which
could limit other shareholders’ ability to influence corporate matters and could delay or prevent a change in corporate control.

The RWT Founders collectively own approximately 57.67% of the outstanding
Common Stock and approximately 60.91% of the voting power of the Common Stock (assuming no exercise of any Warrants or Options). While
the RWT Founders have no agreement to act together with respect to voting or investment decisions in their RWT shares, if they were to
act together, they would be able to influence Holdco’s management and affairs and control the outcome of matters submitted to our
shareholders for approval, including the election of directors and any sale of equity, merger, consolidation, or sale of all or substantially
all of our assets.

Further, the RWT Founders hold an aggregate of 57,752 shares of Class
B Common Stock, representing all issued and outstanding shares of Class B Common Stock. The Class B Common Stock has fifteen votes per
share, and the Class A Common Stock, which is the class of stock held by public shareholders, has one vote per share. Pursuant to the
Holdco A&R Articles, the RWT Founders as the sole initial holders of Class B Common Stock will have rights that are different from
unaffiliated shareholders for so long as 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