Company: RAIN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044438
Chunk: 34

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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Shares”) are subject to the Forward Purchase Agreement, for which Meteora was paid approximately $4.1 million at Closing (the “Prepayment”)
and we retained approximately $20,000 (the “Prepayment Shortfall”). The Forward Purchase Agreement matures on the date of
the effectiveness of a certain registration statement filed by Holdco with the Securities and Exchange Commission following the Closing
Date (the “Maturity Date”). Meteora may sell the Forward Purchase shares at any time following the Closing Date until the
Maturity Date at a price not less than $10.00 per share. If Meteora sells any of the Forward Purchase Shares, Meteora will pay to Holdco
$10.00 for each share sold, less the Prepayment Shortfall. On Maturity Date, any Forward Purchase Shares that have not been sold by Meteora
will be returned to us for no consideration, provided that if the proceeds of the shares sold by Meteora prior to the Maturity Date is
less than the Prepayment Shortfall, then we will pay cash to Meteora in an amount equal to such difference.

Loan Agreement with an Affiliate of Harry
You

On December 30, 2024, Holdco entered into the
Loan Agreement with RHY, an affiliate of Harry You, our Chairman, pursuant to which RHY committed to provide Holdco with up to $7 million
in new loans. Prior to each drawdown, pursuant to the Loan Agreement, Holdco must certify to RHY, among other things, that it has used
its best efforts to raise equity, equity-linked, or debt financing on terms available in the market to a similarly-situated company in
similar circumstances, and is unable to obtain alternate financing in the amount of such drawdown. Once amounts are borrowed, they may
not be re-borrowed. Additionally, Mr. You agreed to roll over an aggregate of approximately $3.1 million of loans and advances owed to
him or to his affiliates by Coliseum and RWT into the Loan Agreement and such amounts were treated for all purposes as loans outstanding
pursuant to the Loan Agreement (which, for the avoidance of doubt, does not decrease the $7 million commitment). The Loan has an interest
rate of 5%, and interest will be due and payable quarterly in arrears. As of March 31, 2025, we had drawn around $737,000 from the
LOC, bringing the total