Business
Restructuring Advances Rainmaker’s Strategy to Up-List to the OTCQB
Restructuring Advances Rainmaker’s Strategy to Up-List to the OTCQB.
About this update from Rainmaker Worldwide Inc.
[{"type":"text","content":"\n 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, whic...