Company: RAIN
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001213900-25-035587
Chunk: 203

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-25
Form: 424B3
Chunk 203
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 in February 2025. Additionally, conditioned on approval by the Compensation Committee of our board of directors,
the Termination Letter provides that Mr. Riley will be granted 10,000 shares of Class A Common Stock of the Company vesting one year
from the date of grant.

Mr. Riley’s decision to resign as Chief
Executive Officer was not the result of any disagreement with our company or our board of directors, including any matters relating to
our operations, polices, accounting practices or financial reporting. Mr. Riley will remain as a member of the Company’s board of
directors (the “Board”).

As previously announced, the Company appointed Randall Seidl to serve
as Co-Chief Executive Officer effective as of January 2, 2025. Following the resignation of Mr. Riley, Mr. Seidl is its sole Chief Executive
Officer.

Liquidity

As of December 31, 2024, the Company had
approximately $37,000 in cash and had a working capital deficit of approximately $5.4 million. The Company expects to continue to
incur expenses and begin to generate revenues as we continue to grow and scale our business.

In connection with the Business Combination, on
December 30, 2024, RHY Management LLC (“RHY”), an affiliate of Harry You, agreed to issue a line of credit (the “LOC”)
to Holdco for up to $7.0 million, in addition to the Rollover amount described in Note 6 (such amounts borrowed under the LOC, together
with the Rollover, the “Loan”). The Loan has an interest rate of 5%, and interest will be due and payable in arrears quarterly.
As of December 31, 2024, the Company has not withdrawn any amount under the $7.0 million available funding under the LOC and has approximately
$3.1 million in Rollover amount outstanding. Subsequent to December 31, 2024, the Company borrowed approximately $839,000 under the LOC.

<div align='center'>F-8</div>

The Company’s management estimates approximately
$6.3 million and approximately $62 million in expenses for our one-year and five-year business plan. These funds are expected to be used
for producing units, integrating and rolling out software for the rain enhancement platform, expanding water services through the ‘land
and expand’ client acquisition model, and potentially acquiring other weather technologies. Since the base technology and products