Restructuring elevates Rainmaker’s strategy to
Rainmaker Worldwide removes $ 5.5 million in debt and liabilities
Peterborough, Calif., April 6, 2021 (GLOBE NEWSWIRE) – via NewMediaWire – Rainmaker Worldwide Inc. (OTC: RAKR) (“Company” or “RAKR“) Today announced that it has entered into a share swap agreement (” Agreement “) with its Dutch shareholders which transferred USD 5.5 million of RAKR debt and liabilities to its Dutch shareholders who took an increased stake in Rainmaker Holland BV (“RHBV”)). These same shareholders returned 20 million RAKR shares under the share exchange agreement and RHBV’s capital expansion reduced RAKR’s stake to 12%. RAKR has pursued strategic restructuring since late 2020 with three main objectives: to rejuvenate RAKR’s balance sheet, expand corporate finance options and explore a wider range of clean water solutions as part of its global water development by as a service (“WaaS”) projects.
This agreement and the debt and liability reduction of $ 5.5 million (62% reduction) include obligations under previous royalty agreements of $ 1.97 million. The original Dutch shareholders retain a 16.9% stake in RAKR while RAKR retains a 12% stake and one of the two seats on the RHBV 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 of outstanding promissory notes, loans and debts that were previously converted to restricted shares. announced on March 11, 2021. These restructuring measures will significantly improve RAKR’s ability to access capital and position the company to increase water security and reduce poverty globally. At the same time, RHBV’s access to capital for research and development, manufacturing and product development will be improved as it will become a private Dutch entity with much wider access to European grant programs as a result of This agreement. These results allow RAKR to expand its worldwide WaaS offering with the highest level of technological standards.
Michael O’Connor, CEO of RAKR, said: “WaaS offers significant economic opportunities for regions suffering from severe water stress, which will affect nearly half of the world’s population by 2030. Estimates show that every US dollar invested in clean water generates five dollars in economic value, and RAKR is dedicated to exploring new ways to provide better quality of life to more communities around the world. “
RAKR will keep its trade name under the name “Rainmaker Worldwide Inc.” with associated brands, and will retain all WaaS contracts, including in Sri Lanka, Bahamas, Jamaica and Turks and Caicos Islands. In addition, it retains the exclusive rights to use Rainmaker’s air-to-water and water-to-water (RHBV) technologies for WaaS projects globally. RAKR will purchase products from RHBV using a 15% cost plus formula and in perpetuity on a most favored nation basis.
“This new restructuring presents enormous growth opportunities for RAKR and RHBV,” said Mr. O’Connor. “At the same time, Rainmaker’s exclusivity in the WaaS market without increasing product costs means that shareholder value is guaranteed for the future as we move towards 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, the Netherlands. The company provides economical drinking water on a large scale wherever it is needed. Rainmaker has been recognized as the Best Community Water Impact Solution in the World 2020 by Capital Finance International. For the latest product information and FAQs, please visit www.rainmakerww.com.
Certain matters discussed in this announcement contain statements, estimates and projections regarding the growth of Rainmaker’s business, potential distribution partnerships and / or customers, and associated business strategy. These statements, estimates and projections may constitute forward-looking statements within the meaning of federal securities laws. Factors or events that could cause our actual results to vary may arise from time to time. Rainmaker’s assumes no obligation to publicly update or revise 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.
Rainmaker Worldwide Inc.
Executive Chairman and Chief Executive Officer