Rain Enhancement Technologies Holdco, Inc. · NASDAQ:RAIN
Rain Enhancement Technologies Holdco — Rain Enhancement Technologies — SPAC Merger (June 2024)
42 slides from Rain Enhancement Technologies Holdco's SPAC merger presentation, Jun 26, 2024
Slide 1: Rain Enhancement Technologies Management Presentation
Rain Enhancement Technologies, Inc. Management Presentation June-2024 TM
Slide 2: Disclaimer
2 TM Disclaimer Disclaimer: This presentation (this “Presentation”) is provided for informational purposes only and has been prepared by Rain Enhancement Technologies, Inc. (the “Company” or “RET”), and Coliseum Acquisition Corp. (“Coliseum” or “SPAC”) to assist interested parties in making their ow
Slide 3: Global Crisis with a Proven Solution
3 TM Global Crisis with a Proven Solution 1 Massive Global Water Shortage Current Water Supply Solutions 1. There are primarily 3 additional water supply solutions included in plans for water scarce regions: 1. Desalination 2. Chemical Cloudseeding 3. Ionization Cloudseeding 2. Goal is to fill ~5-10
Slide 4: Understanding the RET Story
4 TM Understanding the RET Story ✓ Ultimate product with inelastic demand in an urgent context of global water crisis ✓ Proven technology - statistically documented efficacy over extended trial1 ✓ Broad list of potential customers across localities, countries, organizations and industries2 ✓ Busines
Slide 5: Chris Riley, Chief Executive Officer
5 RET CEO Former Roles • President, Worldwide Field Operations for DataRobot • Chief Revenue Officer, Automation Anywhere • Executive Positions at Dell • President of Americas Sales and Customer Operations • President Dell Technologies Select and SVP Global Alliances • Americas Vice President and Ge
Slide 6: Much of the World is in a Major Water Crisis
6 TM Much of the World is in a Major Water Crisis Source: NY Times, Morgan Stanley, World Atlas, WHO <1% of the water in the world is drinkable 40% gap in the supply of water & demand by 2030 20% drop in renewable water resources for every 1°C increase in global avg. temperature
Slide 7: The Economic and Human Consequences are Severe
7 TM The Economic and Human Consequences are Severe Global Food and Water Security Putting Human Life at Risk Widespread Water Shortage is Affecting Transportation & Logistics Water Scarcity is Threatening Global Energy Production Source: The Counter, 2022; Modern Farmer, 2022; NBC News, 2022; Wall
Slide 8: Tailwinds Driving All-Of-The Above Water Supply Strategy
8 TM Tailwinds Driving “All-Of-The Above” Water Supply Strategy $625b Required over the next 20 years to fix, maintain and improve the US’s drinking water 1,300 Drinking water and wastewater projects launched through the Bipartisan Infrastructure Law across the country “There is an urgent need to ke
Slide 9: The Technology
9 TM The Technology
Slide 10: How Ionization Technology Generates Rainfall
10 TM How Ionization Technology Generates Rainfall Plumes attach to cloud nuclei and pass along charge stimulating growth into rain drops 3 Ions attach to air particles and expand into charged ion plumes as they reach cloud layer 2 System releases electrically charged negative ions into naturally oc
Slide 11: Evolution of Ionization Rainfall Generation
11 TM Evolution of Ionization Rainfall Generation 1931 1931 Van De Graaff Generator introduces ionization principles 1930s Bergeron-Findeisen theorize around supercooled water droplets 1964 Soviet scientists run successful supercooled fog dissipation experiments 1990s MIT’s Atmospheric Lab conducts
Slide 12: Design for Making Rainfall Enhancement Viable
12 TM Design for Making Rainfall Enhancement Viable Single system serves many customers over 70-mile radius Increased average rainfall by 9% in 2020 and 18% in 2022 Modular approach scalable in all global regions Proven design with demonstrated results 10-15yr lifespan with minimal ongoing costs1 En
Slide 13: Addressing Key Questions Around Ionization Cloudseeding
13 TM Addressing Key Questions Around Ionization Cloudseeding Key Questions RET Clarifications Notoriously difficult to design experiments that demonstrate efficacy Statistically documented trials led by RET Senior Technical Advisor1 Measuring attribution – how much rain is produced above baseline D
Slide 14: Weather Forecasting Advancements Essential to Enhancement Impact
14 TM Weather Forecasting Advancements Essential to Enhancement Impact • Pinpoint precision and accuracy -> 4-day forecasts are now as accurate as 1-day forecasts were 30 years ago • Data has improved -> more extensive and higher resolution observations can be used as inputs into weather models • We
Slide 15: Historic Solutions
15 Historic Solutions • Removes salts and minerals from seawater through a chemical, reverse osmosis treatment process • High-pressure systems require a high amount of energy to separate and dissolve solids from water ✓ Potential to supply large quantities and steady supply of potable water supplies
Slide 16: Ionization Rainfall Generation
16 Ionization Rainfall Generation • Will emit negative ions with electrical charge in cloud condensation nuclei, which stimulates growth of water droplets • Will be powered by solar panel array, which uses minimal energy to operate ✓ Existing technology in the field has proven significant rainfall g
Slide 17: Ionization Rainfall Generation is the Least Expensive Potable Water
17 TM Ionization Rainfall Generation is the Least Expensive Potable Water per m3 Recycled / Managed Water Source: IOP Science, UCLA, Advisian research Note: Cost of ionization rainfall generation calculated based on past, third-party trials. Cost of Desalination calculated using the maximum producti
Slide 18: Third-Party Trials in the Hajar Mountains
18 TM • Trials were carried out in the Hajar Mountains from 2013-2018; one of the most water-stressed / rainfall-stressed areas in the world • ~20 Automatic Weather Stations were set up to monitor atmospheric conditions and collected daily measurements • Array of ~200 rain gauges on a 10km grid to c
Slide 19: Oman Reservoir in Third-Party Trial Area
19 TM Oman Reservoir in Third -Party Trial Area • Data satellite imagery of the target area during the Oman third -party trials demonstrates changes in reservoir water levels between December 2019 -2020 Source: Planet satellite imagery
Slide 20: Oman Reservoir in Third-Party Trial Area
20 TM Oman Reservoir in Third -Party Trial Area • Visual expansion of reservoir circumference in one year of rainfall generation • Illustrates results from additional rainfall generation Source: Planet satellite imagery
Slide 21: RET is ~6x Lower Cost than Chemical Cloudseeding
21 TM RET is ~6x Lower Cost than Chemical Cloudseeding Illustrative Customer Cost-Benefit Analysis RET Cost Curve vs. Chemical Cloudseeding $33 $17 $17 $214 $214 $214 Year 1 Year 2 Year 3 Ionization Cloudseeding Chemical Cloudseeding Illustrative costs based on historical trials (in $ / A-ft ) Sourc
Slide 22: Chemical Cloudseeding Substances May Harm The Environment
22 TM Chemical Cloudseeding Substances May Harm The Environment Chemical Cloudseeding Raises Ecological Concerns Sodium chloride Silver Iodide Sulfur Dioxide Potentially toxic to terrestrial and aquatic life Chain reaction of environmental pollution Runoff & leaching may lead to higher concentration
Slide 23: RET is ~20x Lower Cost than Desalination
23 TM RET is ~20x Lower Cost than Desalination Illustrative Customer Cost-Benefit Analysis RET Cost Curve vs. Desalination $33 $17 $17 $2,100 $2,100 $2,100 Year 1 Year 2 Year 3 Ionization Cloudseeding Desalination Illustrative costs based on historical trials (in $ / A-ft ) Source: Management projec
Slide 24: Desalination Plants Create Energy & Cost Issues
24 TM Desalination Plants Create Energy & Cost Issues Energy Intensity and Cost of Desalination Make it Non-Scalable 1. Expensive to build / operate: Desalination plants need to invest up to $1B1 to purchase and maintain equipment such as reverse osmosis membranes and high-pressure pumps 2. High Ene
Slide 25: RET Robust Platform Ready for Global Deployment
25 TM RET Robust Platform Ready for Global Deployment ✓ Optimized design for all weather conditions ✓ Durability creates low ongoing operational cost ✓ Modular manufacturing for flexible scaling Assessment Data Analysis Monitoring Communication Infrastructure Detailed local physical and climatologic
Slide 26: RET Business Model
26 TM RET Business Model
Slide 27: Illustrative Potential Partners & Customers
27 TM Illustrative Potential Partners & Customers Who Need More Potable Water Note: Entities mentioned on this page are not affiliated with RET, nor is there any sponsorship or endorsement (or other) relationship between RET and any of the entities on the page. Hydro Power Plants Nuclear Power Plant
Slide 28: Landmark MOU for RET
28 TM Landmark MOU for RET “We are impressed with RET’s solution given its short deployment lead time, ability to operate off the grid, and compelling ROI. We look forward to expanding our partnership with RET in the coming years to support DLC’s sustainable growth plans worldwide.” CEO, Mike Meldma
Slide 29: Large TAM: Many Ways to Win
29 TM Large TAM: Many Ways to Win
Slide 30: RET Diverse End Verticals
30 RET Diverse End Verticals 45.4 89.8 0.9 Insurance Golf & Ski 0.4 Agriculture Industrial Insurance Golf & Ski Gov / NGO 2022 Agriculture Industrial Gov / NGO 24.4 3.3 8.3 9.0 23.6 6.7 6.8 6.5 2032 MEA NA EU 1 2 3 4 5 6 Source: Top tier, global consulting firm, Barclays, CGTN, Drought.com, GWI Wate
Slide 31: Powerful Benefits for Broad Potential Customer Segments
31 TM Powerful Benefits for Potential Broad Potential Customer Segments ✓ Hydroelectric power producers ✓ Supply chain, transportation, logistics ✓ Agriculture, mining, oil, insurance ✓ Government organizations ✓ Decarbonization initiatives ✓ Ecosystem restoration foundations ✓ Developed nations exp
Slide 32: RET's Value Proposition
32 TM RET’s Value Proposition Large Landowners ✓ ✓ ✓ Energy & Transportation ✓ ✓ ✓ Major Water Sources (Dams) ✓ ✓ ✓ Oil and Gas Industry ✓ ✓ ✓ Insurance & Reinsurance ✓ ✓ ✓ Decarbonization Initiatives ✓ ✓ ✓ Supranational Govt. Orgs. ✓ ✓ ✓ City, State, Federal Govt. ✓ ✓ ✓ Tourism and Leisure ✓ ✓ ✓ Ph
Slide 33: RET Revenue Forecast Summary
33 TM RET Revenue Forecast Summary • Option A • Purchase Price: $750k • Installation Fee: 35% • Software Service & Maintenance: $185k • Option B • Purchase Price: $1.25m • Installation Fee: 35% • Software Service & Maintenance: $200k • Option C • Purchase Price: $1.25m • Installation Fee: 35% • Soft
Slide 34: Per System Unit Economics
34 TM Array Purchase Price $ 750,000 Administrative Costs 2,000 Transportation Costs 10,000 Raw Materials 141,030 Site Local Costs 23,000 Annual Maintenance 63,000 Depreciation 8,411 Contribution Margin / System $ 502,559 % Margin 67 % Total LTV $ 502,559 CAC $ 187,500 LTV:CAC 2.7 x Annualized ROIC
Slide 35: Use of Proceeds and Capital Requirement
35 TM Use of Proceeds and Capital Requirement Expected Use of Proceeds 1. Ensure seamless technology integration and rollout of software suite to deliver consistent results 2. Success supporting ongoing projects 3. Deliver additional water services with “land and expand” model within existing custom
Slide 36: Summary
36 TM Summary
Slide 37: Transaction Overview
37 TM Transaction Overview • Coliseum Acquisition Corp to acquire RET; pre-closing valuation of $45m • ~$50m public equity capital required to fund long-term growth strategy • $10m minimum cash condition • RET ticker: RAIN • RET senior management entering into minimum 2 year lock up periods 1 2 3 PI
Slide 38: Pro Forma Ownership and Sources & Uses by Redemption
38 TM Redemption % 0% 25% 50% 75% 100% Shareholders: SPAC Public Shareholders 2.9 2.2 1.4 0.7 - SPAC Sponsors (1) 3.0 3.0 3.0 3.0 3.0 NRA Shareholders (2) 0.6 0.6 0.6 0.6 0.6 Deferred Consulting Fee Shares 0.1 0.1 0.1 0.1 0.1 RET Shareholders (3)(4) 4.1 4.1 4.1 4.1 4.1 Total Shares Outstanding 10.8
Slide 39: RET Meets Strong Investment Criteria
39 TM RET Meets Strong Investment Criteria Disruptive Platform & Service Offerings Go-to-Market Business Moats Strong Secular Tailwind Organic & Inorganic Growth Deep Industry Expertise Large and Growing TAM Compelling ROIC ✓ RET will be the first pure play public company in the rainfall generation
Slide 40: Time for Developing and Scaling is Now
40 TM Time for Developing and Scaling is Now Technology Innovation ✓ Machine learning and advanced gauge monitoring allow for precise rainfall measurement Weather Forecast ✓ Weather monitoring system accuracy has massively improved in recent decades 1 3 2 World-Class Team ✓ RET expects to combine va
Slide 41: Risk Factors
41 TM Risk Factors This presentation (this “Presentation”) is provided for informational purposes only and has been prepared by Rain Enhancement Technologies, Inc. (the “Company” or “RET”), and Coliseum Acquisition Corp. (“Coliseum” or “SPAC”) to assist interested parties in making their own evaluat
Slide 42: Risk Factors (Cont'd)
42 TM Risk Factors (Cont’d) • The Company may face political, regulatory and social opposition to its business and activities; • Following the consummation of the Potential Business Combination, Holdco will incur significant increased expenses and administrative burdens as a public company, which co
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