Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 54

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 54
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 public float as of April
15, 2025.

The registration of these shares permits the public resale of such
shares, subject to any applicable contractual lock-up obligation. The registration and availability of a significant number of securities
for trading in the public market may have an adverse effect on the market price of the Class A Common Stock.

32

Sales of a substantial number of shares
of Class A Common Stock in the public market, particularly sales by our executive officers, directors and significant shareholders, or
the perception that these sales could occur, could cause the market price of Class A Common Stock to decline.

Sales of a substantial number of shares of Class
A Common Stock in the public market, particularly sales by our executive officers, directors and principal shareholders, or the perception
that these sales might occur, could cause the market price of Class A Common Stock to decline. Some of our executive officers, directors
and the holders of a substantial number of shares of Class A Common Stock following the Business Combination are subject to lock-up provisions
pursuant to the Lock-up Agreement that, for a period of at least two years from the date of Closing, subject to certain exceptions, prohibit
them from offering for sale, selling, contracting to sell, granting any option for the sale of, transferring or otherwise disposing of
any shares of Class A Common Stock and of any securities convertible into or exercisable for Class A Common Stock.

When the applicable lock-up periods expire, our
security holders subject to lock-up provisions will be able to sell shares of Class A Common Stock in the public market. Sales of a substantial
number of such shares upon expiration of the lock-up provisions, the perception that such sales may occur or early release of these provisions
could cause our market price to fall or make it more difficult for you to sell your Class A Common Stock at a time and price that you
deem appropriate.

In addition, we may file a registration statement
to register shares reserved for future issuance under our equity compensation plans. Subject to the satisfaction of applicable vesting
requirements and expiration of the lock-up provisions referred to above, the shares issued upon exercise of outstanding stock options
would be available for immediate resale in the open market.

Certain existing shareholders purchased,
or may purchase, securities in the Company at a price below the current trading price of such securities, and may experience a positive
rate of return based on the current trading price. Future investors in the Company may not experience a similar rate of return.

Certain shareholders in the Company, including