Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 215

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 215
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 warrants could force you to (i) exercise your Warrants and pay the exercise price therefor at a time when it may be
disadvantageous for you to do so, (ii) sell your Warrants at the then-current market price when you might otherwise wish to hold your
Warrants or (iii) accept the nominal redemption price which, at the time the outstanding Warrants are called for redemption, is likely
to be substantially less than the market value of your Warrants. As of the date of this Annual Report, the Class A Common Stock has never
traded above $18.00 per share, therefore neither current nor recent share prices meet or exceed the threshold that would allow Holdco
to redeem the Warrants.

In addition, we have the ability to redeem the
outstanding Warrants at any time after they become exercisable and prior to their expiration, at a price of $0.10 per warrant upon a
minimum of 30 days’ prior written notice of redemption provided that the closing price of the Class A Common Stock equals or exceeds
$10.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant) for
any 20 trading days within a 30 trading-day period ending on the third trading day prior to proper notice of such redemption and provided
that certain other conditions are met, including that holders will be able to exercise their warrants on a cashless basis prior to redemption
for a number of shares of Class A Common Stock determined based on the redemption date and the fair market value of the Class A Common
Stock. The value received upon exercise of the Warrants (i) may be less than the value the holders would have received if they had exercised
their warrants at a later time where the underlying share price is higher and (ii) may not compensate the holders for the value of the
Warrants, including because the number of shares of Class A Common Stock received is capped at 0.361 shares per warrant (subject to adjustment)
irrespective of the remaining life of the Warrants. In addition, such redemptions may occur at a time when the Warrants are “out-of-the-money,”
in which case holders thereof would lose any potential embedded value from a subsequent increase in the value of the Class A Common Stock
had such Warrants remained outstanding.

In the event that Holdco determines to redeem
the Warrants when the closing price of the shares of Class A Common Stock equals