Company: RAIN
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001213900-25-035587
Chunk: 79

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-25
Form: 424B3
Chunk 79
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 each of the Warrants as a liability at its fair value as determined
by us based upon a valuation report obtained from an independent third party valuation firm. At each reporting period (1) the accounting
treatment of the Warrants will be re-evaluated for proper accounting treatment as a liability or equity and (2) the fair value of the
liability of the Warrants is remeasured and the change in the fair value of the liability is recorded as other income (expense) in our
consolidated statements of operations. Changes in the inputs and assumptions for the valuation model we use to determine the fair value
of such liability may have a material impact on the estimated fair value of the embedded derivative liability. The share price of Class
A Common Stock represents the primary underlying variable that will impact the value of the derivative instruments. Additional factors
that may impact the value of the derivative instruments include the volatility of our stock price, discount rates and stated interest
rates. As a result, our consolidated financial position and results of operations will fluctuate quarterly, based on various factors,
such as the share price of the Class A Common Stock, many of which are outside of our control. In addition, we may change the underlying
assumptions used in our valuation model, which could in result in significant fluctuations in our results of operations. If our stock
price is volatile, we expect that we will recognize non-cash gains or losses on our Warrants or any other similar derivative instruments
each reporting period and that the amount of such gains or losses could be material. The impact of changes in fair value on earnings may
have an adverse effect on the market price of Class A Common Stock.

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Massachusetts law and the Holdco A&R Articles contain certain provisions, including anti-takeover provisions, that limit the ability of stockholders to take certain actions and could delay or discourage takeover attempts.

Chapter 156D, §8.06 of the Massachusetts General Laws provides
that the terms of the directors of a publicly traded Massachusetts corporation must be staggered over three years. This could make it
difficult to replace a majority of the board in any one year. A public corporation may opt out of the staggered board requirement by a
vote of its board of directors or a two-thirds vote of each class of stock outstanding.

Chapter 110F of the Massachusetts General Laws generally provides that,
if a person acquires 5% or more of the stock of a Massachusetts corporation