Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 216

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 216
---
 or exceeds $18.00 per share or $10.00 per share, pursuant
to Section 6.1 or Section 6.2 of the Warrant Agreement, respectively, Holdco will fix a date for the redemption. Notice of redemption
will be mailed by first class mail, postage prepaid, by Holdco not less than thirty (30) days prior to the redemption date to the registered
holders of the Warrants to be redeemed at their last addresses as they appear on the registration books. Any notice mailed in the manner
herein provided will be conclusively presumed to have been duly given whether or not the registered holder received such notice.

36

Warrant holders will only be able to exercise
their Warrants on a “cashless basis” under certain circumstances, and if they do so, they will receive fewer shares of Class
A Common Stock from such exercise than if such warrants were exercised for cash.

The Warrants generally may not be exercised on
a “cashless basis”, except as described below.

The Warrant Agreement provides that in the following
circumstances holders of Warrants who seek to exercise their Warrants will not be permitted to do for cash and will, instead, be required
to do so on a cashless basis in accordance with Section 3(a)(9) of the Securities Act: (i) if the Class A Common Stock issuable
upon exercise of the Warrants are not registered under the Securities Act in accordance with the terms of the Warrant Agreement;
and (ii) if we have so elected and the Class A Common Stock are at the time of any exercise of a warrant not listed on a national securities
exchange such that they satisfy the definition of “covered securities” under Section 18(b)(1) of the Securities Act.
If you exercise your Warrants on a cashless basis under the circumstances described in clauses (i) and (ii) in the preceding sentence,
you would pay the warrant exercise price by surrendering the Warrants for that number of shares of Class A Common Stock equal to the
quotient obtained by dividing (x) the product of the number of shares of Class A Common Stock underlying the Warrants, multiplied by
the excess of the “fair market value” of the shares of Class A Common Stock (as defined in the next sentence) over the exercise
price of the Warrants by (y) the fair market value. The “fair market value” is the average reported closing price of