Company: RAIN
Filing Date: 2025-05-16
Form Type: 424B3
Source: 0001213900-25-044498
Chunk: 7

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-16
Form: 424B3
Chunk 7
---
pliance with the MVLS Rule and MVPHS Rule. While the Company is exercising diligent efforts to maintain the listing of its securities
on Nasdaq, there can be no assurance that it will be able to regain or maintain compliance with Nasdaq listing standards.

On January 29, 2025, Holdco, RWT and Christopher
Riley entered into a letter agreement whereby Mr. Riley resigned as Co-Chief Executive Officer of the Company and RWT effective as of
January 30, 2025 (the “Termination Letter”). Pursuant to the Termination Letter, in lieu of all other compensation and payments
of any kind due and payable to Mr. Riley, Mr. Riley will be paid for services rendered in an amount of $124,500, payable in 18 monthly
installments beginning in February 2025. As of March 31, 2025, the Company accrued approximately $14,000 in payment to Mr. Riley in the
accompanying unaudited condensed balance sheet. Additionally, conditioned on approval by the Compensation Committee of the board of directors
(the “Board”), the Termination Letter provides that Mr. Riley will be granted 10,000 shares of Class A Common Stock
of the Company vesting one year from the date of grant.

Mr. Riley’s decision to resign as Chief
Executive Officer was not the result of any disagreement with the Company or the Board, including any matters relating to the Company’s
operations, polices, accounting practices or financial reporting. Mr. Riley will remain as a member of the Board.

As previously announced, the Company appointed
Randall Seidl to serve as Co-Chief Executive Officer effective as of January 2, 2025. Following the resignation of Mr. Riley, Mr. Seidl
is the Company’s sole Chief Executive Officer.

Liquidity

As of March 31, 2025, the Company had approximately
$273,000 in cash and had a working capital deficit of approximately $7.0 million. The Company expects to continue to incur expenses
and begin to generate revenues as it continues to grow and scale the business.

In connection with the Business Combination, on
December 30, 2024, RHY Management LLC (“RHY”), an affiliate of Harry You, the Company’s Chairman, entered into a loan
agreement with Holdco (the “Loan Agreement”) pursuant to which RHY agreed to issue a line of credit (the “LOC”)
to Holdco for