Company: RAIN
Filing Date: 2025-04-18
Form Type: POS AM
Source: 0001213900-25-033116
Chunk: 204

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-18
Form: POS AM
Chunk 204
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 entered into a loan agreement (the “Loan Agreement”) with RHY, an affiliate of Harry You, pursuant to which RHY agreed to issue an LOC to Holdco for up to $ 7million, in addition to the Rollover amount described below. The Loan has an interest rate of 5%, and interest will be due and payable in arrears quarterly. Prior to Closing, the outstanding amount that Coliseum and RWT owed to Mr. You and his affiliates are: (i) approximately $ 1.7million and approximately $ 333,000of advances to Coliseum and RWT, respectively, (ii) convertible note balance of $ 667,500to Coliseum, and a portion under the Note discussed above of approximately $ 216,000to RWT (which amount includes $ 200,000in principal and approximately $ 16,000in accrued interest), and (iii) an outstanding balance of $ 180,000in accrued administrative fees to Coliseum, for a total of approximately $ 3.1million. All of these outstanding amounts (the “Rollover”) were assigned to and assumed by Holdco and are treated for all purposes as loans outstanding under the Loan Agreement. The Loan has an interest rate of 5%, and interest will be due and payable in arrears quarterly. The Rollover amount does not reduce the $ 7million funding available to the Company under the LOC. As of December 31, 2024, the Company had not borrowed any of the $ 7million available funding under the LOC. Subsequent to December 31, 2024, the Company borrowed approximately $ 839,000under the LOC. Employment Agreement On December 31, 2024, Holdco entered into a binding offer letter (the “Offer Letter”) with its new CEO, Mr. Seidl effective January 2, 2025, pursuant to which Holdco agreed to pay to the CEO (i) an annual salary of $ 500,000, (ii) a contingent bonus payment of $ 5.0million that will be issued under a form of an unsecured note payable (the “Officer Note”) on the earlier of (x) four-year anniversary of the Officer Note, subject to the CEO’s continued service with Holdco through such date, and (y) the date of termination, if Holdco terminates the CEO’s employment without cause. As of the date of this filing, the Officer Note has not been issued