Restructuring Advances Rainmaker’s Strategy to Up-List to the OTCQB

Rhea-AI Summary

Rainmaker Worldwide Inc. (RAKR) has eliminated $5.5 million in debt and liabilities through an Equity Exchange Agreement with Dutch shareholders. This strategic move, which represents a 62% reduction in obligations, transfers debt to shareholders who now hold a larger equity stake in Rainmaker Holland B.V. RAKR's ownership in RHBV decreases to 12%, while it retains exclusive rights to water technologies globally. CEO Michael O’Connor emphasizes that the restructuring enhances capital access and positions RAKR for growth in the global Water-as-a-Service sector, aiming to address water scarcity issues.

Positive

• Removal of $5.5 million in debt and liabilities, improving balance sheet.
• 62% reduction in overall obligations, enhancing financial stability.
• Strategic restructuring allows increased access to capital for RAKR and RHBV.
• Retention of exclusive water technologies, securing future revenue streams.
• Potential for growth in the Water-as-a-Service market with a focus on social impact.

Negative

• RAKR's ownership in RHBV reduced to 12%, limiting influence over operations.

Rainmaker Worldwide Removes 5.5 Million USD of Debt and Liabilities 

Peterborough, CA, April 06, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Rainmaker Worldwide Inc. (OTC: RAKR) (“Company” or “RAKR”) announced today the completion of an Equity Exchange Agreement (“Agreement”) with its Dutch Shareholders that transferred 5.5 million USD in debt and liabilities from RAKR to its Dutch Shareholders who have taken an increased equity position in Rainmaker Holland B.V. (“RHBV”).  These same shareholders returned 20 million RAKR shares as part of the Equity Exchange Agreement and the equity expansion of RHBV has reduced RAKR’s ownership to 12%.  RAKR has been pursuing a strategic restructuring since late 2020 with three main objectives — rejuvenate RAKR’s balance sheet, expand corporate finance options and explore a wider spectrum of clean water solutions as part of its development of global Water-as-a-Service (“WaaS”) projects.

This Agreement and the 5.5 million USD debt and liability reduction (62% reduction) includes obligations under previous royalty agreements of 1.97 million USD. The original Dutch shareholders retain a 16.9% stake in RAKR while RAKR retains a 12% ownership and one of two seats on RHBV’s supervisory board. This transaction unequivocally transforms RAKR’s balance sheet while significantly improving access to capital for both parties.

This latest restructuring includes 775,000 USD in outstanding promissory notes, loans and debt that were converted into restricted shares previously announced on March 11, 2021. These restructuring actions will substantially improve RAKR’s ability to access capital and position the Company to increase water security and decrease poverty on a global scale. At the same time, RHBV’s access to capital for research and development, manufacturing and product development will be enhanced as it becomes a privately held Dutch entity with far greater access to European grant programs as a result of this Agreement. These outcomes allow RAKR to expand its global WaaS offering with the highest level of technological standards.

RAKR CEO Michael O’Connor stated, “WaaS facilitates significant economic opportunity for regions suffering from severe water stress, which will affect nearly half of the global population by 2030. Estimates show that every US dollar invested in clean water generates five dollars in societal and economic value, and RAKR is dedicated to exploring new ways to deliver higher qualities of life for more communities worldwide.”

RAKR will maintain its operating name as ‘Rainmaker Worldwide Inc.’ with related trademarks, and will retain all WaaS contracts including in Sri Lanka, The Bahamas, Jamaica and Turks and Caicos Islands. In addition, it retains the exclusive rights to use Rainmaker’s (RHBV) Air-to-Water and Water-to-Water technologies for WaaS projects globally. RAKR will purchase products from RHBV using a cost plus 15% formula and in perpetuity on a Most-Favored-Nation basis.

“This further restructuring presents huge growth opportunities for RAKR and RHBV,” stated Mr. O’Connor. “Concurrently, Rainmaker’s exclusivity in the WaaS market with no increase in product costs means that shareholder value is secured for the future as we advance to the OTCQB®.”

About Rainmaker Worldwide Inc.

Rainmaker Worldwide Inc. (OTC: RAKR) is a leader in affordable water solutions through a Water-as-a-Service business model. RAKR is headquartered in Peterborough, Canada. RHBV will be headquartered in Rotterdam, Netherlands. The Company provides economical drinking water at scale wherever it’s needed. Rainmaker was recognized as the Best Community Impact Water Solutions Global 2020 by Capital Finance International.  For latest product information and FAQ’s please visit www.rainmakerww.com.

Forward-looking Statements:

Certain matters discussed in this announcement contain statements, estimates and projections about the growth of Rainmaker’s business, potential distribution partnerships and/or clients, and related business strategy. Such statements estimates and projections may constitute forward-looking statements within the meaning of the federal securities laws. Factors or events that could cause our actual results to differ may emerge from time-to-time. Rainmaker’s undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The recipient of this information is cautioned not to place undue reliance on forward-looking statements.

Investor Contact

Rainmaker Worldwide Inc.
Michael O’Connor
Executive Chairman and Chief Executive Officer
info@rainmakerww.com

FAQ

What recent financial changes has Rainmaker Worldwide (RAKR) made?

Rainmaker Worldwide (RAKR) has removed $5.5 million in debt and liabilities through an Equity Exchange Agreement with Dutch shareholders.

How has the restructuring affected RAKR's ownership in RHBV?

RAKR's ownership in Rainmaker Holland B.V. (RHBV) has decreased to 12% as part of the agreement.

What is the significance of the $5.5 million debt reduction for RAKR?

The $5.5 million debt reduction represents a 62% decrease in obligations, enhancing RAKR's financial stability and access to capital.

How does this restructuring impact RAKR's Water-as-a-Service initiatives?

The restructuring positions RAKR to expand its global Water-as-a-Service projects, increasing access to capital and technological standards.

What was the date of the press release regarding RAKR's debt reduction?

The press release was issued on April 6, 2021.