Company: RAIN
Filing Date: 2025-02-12
Form Type: 424B3
Source: 0001213900-25-012904
Chunk: 34

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-02-12
Form: 424B3
Chunk 34
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 the Business Combination
incurred an aggregate of approximately $11.6 million of transaction expenses. At the Closing, the Company paid an aggregate of approximately
$8.9 million of transaction expenses, and deferred the remaining $2.7 million. Following the payment of transaction expenses, the net
cash available to the Company from the Business Combination was approximately $0.1 million.

Accordingly, because the Company received $9 million in gross proceeds
from the Business Combination before the payment of transaction expenses, the Company has adjusted production ramp-up in order to align
the associated cash requirements. Adjustments have been made by reducing or shifting planned operational costs and R&D investments,
on a short-term basis, until additional funding is obtained. RET management has determined that the RET system’s design is complete,
requiring no additional R&D in the near-term, and that the main cash requirement for operations in the next 12 months will be staffing
and operations. On January 29, 2025, the Company closed an additional $500,000 of investment pursuant to the PIPE Subscription Agreements and issued an aggregate of 43,910 shares of Class A Common Stock to the PIPE Investors. On February 6, 2025, the Company closed on the remaining$150,000 of investment pursuant to the PIPE Subscription Agreements and issued an aggregate of 13,173 shares of Class A Common Stock to the PIPE Investors.Additionally, the Company has $7 million available which may be
borrowed under a line of credit from an affiliate of Harry You, of which $300,000 has been borrowed as of the date of this prospectus.
RET will need additional capital to pursue its business objectives. RET’s business and its future plans for expansion are capital-intensive
and the specific timing of cash inflows and outflows may fluctuate substantially from period to period. However, we cannot assure you
that the Company will be able to obtain additional capital for its five-year business plan.

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RET’s operating plan may change because of
factors currently unknown, and RET may need to seek additional funds sooner than planned, through public or private equity or debt financings
or other sources, such as strategic collaborations. Such financings may result in dilution to stockholders, issuance of securities with
priority as to liquidation and dividend and other rights more favorable than common stock, imposition of debt covenants and repayment
obligations or other restrictions that may adversely affect its business. In addition