Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 48

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 48
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 in a reduced level of trading activity in the secondary trading market for our securities;

    ●
    a limited amount of news and analyst coverage; and

    ●
    a decreased ability to issue additional securities or obtain additional financing in the future.

The National Securities Markets Improvement Act of 1996, which is a
federal statute, prevents or preempts the states from regulating the sale of certain securities, which are referred to as “covered
securities.” The Class A Common Stock and Warrants are covered securities because they are listed on Nasdaq. Although the states
are preempted from regulating the sale of covered securities, the federal statute does allow the states to investigate companies if there
is a suspicion of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered securities
in a particular case. If Holdco’s securities are no longer listed on Nasdaq, such securities would not qualify as covered securities
and Holdco would be subject to regulation in each state in which it offers its securities.

An active trading market for Class A Common Stock may not develop
or be sustained and the share price of the Class A Common Stock may be volatile.

Holdco cannot guarantee that an active trading market for the Common
Stock will develop or be sustained, nor can Holdco predict the prices at which its common shares may trade after the Business Combination.

If a public trading market does develop for the Class A Common Stock,
its market price is likely to be highly volatile and could fluctuate widely in price in response to various factors, many of which are
beyond our control, including the following:

    ●
    the concentration of the ownership of our shares by a limited number of affiliated stockholders may limit interest in our securities;

    ●
    limited “public float” with a small number of persons whose sales or lack of sales could result in positive or negative pricing pressure on the market price for the Class A Common Stock;

    ●
    additions or departures of key personnel;

    ●
    loss of a strategic relationship;

    ●
    variations in operating results from the expectations of securities analysts or investors;

    ●
    announcements of new products or services by us or our competitors;

    ●
    reductions in the market share of our products;

    ●
    announcements by us or our competitors of significant acquisitions, strategic partnerships, joint ventures or capital commitments;

    ●
    investor perception of our industry or prospects;

    ●
    insider selling