Company: RAIN
Filing Date: 2025-05-16
Form Type: 424B3
Source: 0001213900-25-044498
Chunk: 20

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-16
Form: 424B3
Chunk 20
---
 fair value recognized in the Company’s
consolidated statements of operations each reporting period until the Maturity Date. As of December 31, 2024, the prepayment shortfall
liability was recorded at maximum value.

Upon receipt of consideration related to the
sale of any shares sold by Meteora, the Company will record the receipt of funds as an increase to cash and a decrease to the “Prepayment
Shortfall liability” until the “Prepayment Shortfall Liability” is zero, and then any remaining proceeds received will
reduce the receivable previously recorded as contra-equity.

The Company incurred no transaction costs that
were directly related to the issuance of the Forward Purchase Agreement.

As of December 31, 2024, the Company recorded
the $4.1 million of Prepayment amount paid at closing within additional paid-in capital and approximately $20,000 in shortfall
payment liability in the accompanying consolidated balance sheet. As of March 31, 2025, the value of the shortfall payment liability
remained unchanged.

Public and Private Placement Warrants

Prior to Closing, Coliseum had 5,000,000 Coliseum
Public Warrants and 3,225,000 Coliseum Private Placement Warrants outstanding. In connection with the Business Combination,
as discussed above, an aggregate of 3,225,000 Coliseum Private Placement Warrants were converted into 806,250 shares
of Holdco Class A Common Stock, and the Coliseum Public Warrants became warrants to purchase 5,000,000 shares of Holdco Class
A Common Stock.

Redemption

Prior to the Closing, certain Coliseum public
shareholders exercised their right to redeem certain of their outstanding shares for cash, resulting in the redemption of 1,063,698 Coliseum
public shares for an aggregate payment of approximately $12.1 million. After redemptions, there was a total of 723,414 Coliseum
public shares and an aggregate of approximately $8.25 million remaining in Coliseum’s trust account. Such remaining Coliseum
public shares were converted into Holdco Class A Common Stock in connection with the Business Combination, as described above.

Transaction Proceeds

For a reconciliation of the net proceeds from the Business Combination to the related changes in cash flows and stockholders’ deficit
as of the closing date, please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

The number of shares of Common Stock issued immediately