Company: RAIN
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001213900-25-035587
Chunk: 100

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-25
Form: 424B3
Chunk 100
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 that RWT will need to make to the rain enhancement technology in order to bring advancements to the systems
to market, please see “RWT Management’s Discussion and Analysis of Financial Condition and Results of Operations”,
in particular the sub-headers “- Investment in Research and Development (R&D), Innovation and Technology”,
“- Development and Enhancement of Proprietary Technology”, and “- Plan of Operations”.

Integrating the latest
weather forecast techniques and data, along with automated control systems and water gauge measurements will enable continual improvement
of any existing generation of hardware in the field.

RWT management estimates
that each equipment site is expected to break even on approximately $1 million of annual revenue on a cash flow basis (with hardware costs
factored in year one), plus operating costs. Multi-year contracts will be sought to make it difficult for new entrants to win market share.
RWT’s business model will be focused on achieving long term client lock-in through SaaS-like, multi-annual contracts.

Moreover, there are several
approaches to rainfall generation besides RWT’s approach. There are companies developing and commercializing chemical-based cloudseeding
technologies. These companies utilize traditional cloudseeding technology, which involves the use of chemicals such as silver iodide,
potassium iodide and dry ice that are dispensed from aircrafts at precise moments of raincloud formation creating potential risks and
unintended consequences. Compared to the traditional chemical cloudseeding approach, RWT’s ionization rainfall generation approach
does not use chemicals in the rain enhancement process. Moreover, we think that RWT’s ionization rainfall generation could enjoy
lower operating costs than traditional chemical cloudseeding. Lastly, the difference between RWT and these companies lies in the expertise
in operations and leading team of water entrepreneurs that provides RWT with a competitive advantage.

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Proceeds of the Business Combination

As described in more
detail elsewhere in this prospectus, the Business Combination between Holdco, RWT, Coliseum, and Merger Sub closed on December 31, 2024.
The gross funds available upon the Closing was approximately $9.0 million. The parties to the Business Combination incurred an aggregate
of approximately $11.6 million of transaction expenses. At the Closing, the Company paid an aggregate of approximately $8.9 million of
transaction expenses, and deferred the remaining $2.7 million. Following the payment of transaction expenses, the net cash available to
the