Company: RAIN
Filing Date: 2025-01-31
Form Type: S-1
Source: 0001213900-25-008536
Chunk: 74

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-01-31
Form: S-1
Chunk 74
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 cashless basis and such cashless exercise
is exempt from registration under the Securities Act. If and when the Warrants become redeemable by us, we may exercise our redemption
right even if we are unable to register or qualify the underlying securities for sale under all applicable state securities laws. Redemption
of the outstanding 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 prospectus, 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,”