RAKR - Restructuring Advances Rainmaker's Strategy to Up-List to the OTCQB
Rainmaker WorldwideRemoves 5.5 Million USD of Debt and Liabilities
Peterborough, Ontario - (NewMediaWire) - April 06, 2021 - RainmakerWorldwide Inc. (OTC: RAKR) (“Company” or “RAKR”) announced todaythe completion of an Equity Exchange Agreement (“Agreement”) with its DutchShareholders that transferred 5.5 million USD in debt and liabilities from RAKRto its Dutch Shareholders who have taken an increased equity position inRainmaker Holland B.V. (“RHBV”). These same shareholders returned 20million RAKR shares as part of the Equity Exchange Agreement and the equityexpansion of RHBV has reduced RAKR’s ownership to 12%. RAKR has beenpursuing a strategic restructuring since late 2020 with three main objectives —rejuvenate RAKR’s balance sheet, expand corporate finance options and explore awider spectrum of clean water solutions as part of its development of globalWater-as-a-Service (“WaaS”) projects.
This Agreement and the 5.5million USD debt and liability reduction (62% reduction) includes obligationsunder previous royalty agreements of 1.97 million USD. The original Dutchshareholders retain a 16.9% stake in RAKR while RAKR retains a 12% ownershipand one of two seats on RHBV’s supervisory board. This transactionunequivocally transforms RAKR’s balance sheet while significantly improvingaccess to capital for both parties.
This latest restructuringincludes 775,000 USD in outstanding promissory notes, loans and debt that wereconverted into restricted shares previously announced on March 11, 2021. These restructuring actions will substantiallyimprove RAKR’s ability to access capital and position the Company to increasewater security and decrease poverty on a global scale. At the same time, RHBV’saccess to capital for research and development, manufacturing and productdevelopment will be enhanced as it becomes a privately held Dutch entity withfar greater access to European grant programs as a result of this Agreement.These outcomes allow RAKR to expand its global WaaS offering with the highestlevel of technological standards.
RAKR CEO Michael O’Connorstated, “WaaS facilitates significant economic opportunity for regionssuffering from severe water stress, which will affect nearly half of the globalpopulation by 2030. Estimates show that every US dollar invested in clean watergenerates five dollars in societal and economic value, and RAKR is dedicated toexploring new ways to deliver higher qualities of life for more communitiesworldwide.”
RAKR will maintain itsoperating name as ‘Rainmaker Worldwide Inc.’ with related trademarks, and willretain all WaaS contracts including in Sri Lanka, The Bahamas, Jamaica andTurks and Caicos Islands. In addition, it retains the exclusive rights to useRainmaker’s (RHBV) Air-to-Water and Water-to-Water technologies for WaaSprojects globally. RAKR will purchase products from RHBV using a cost plus 15%formula and in perpetuity on a Most-Favored-Nation basis.
“This further restructuringpresents huge growth opportunities for RAKR and RHBV,” stated Mr. O’Connor.“Concurrently, Rainmaker’s exclusivity in the WaaS market with no increase inproduct costs means that shareholder value is secured for the future as weadvance to the OTCQB®.”
About Rainmaker WorldwideInc.
Rainmaker Worldwide Inc. (OTC:RAKR) is a leader in affordable water solutions through a Water-as-a-Servicebusiness model. RAKR is headquartered in Peterborough, Canada. RHBV will beheadquartered in Rotterdam, Netherlands. The Company provides economicaldrinking water at scale wherever it’s needed. Rainmaker was recognized as theBest 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 inthis announcement contain statements, estimates and projections about thegrowth of Rainmaker’s business, potential distribution partnerships and/orclients, and related business strategy. Such statements estimates andprojections may constitute forward-looking statements within the meaning of thefederal securities laws. Factors or events that could cause our actual resultsto differ may emerge from time-to-time. Rainmaker’s undertakes no obligation topublicly update or revise any forward-looking statements, whether as a resultof new information, future events or otherwise. The recipient of thisinformation is cautioned not to place undue reliance on forward-lookingstatements.
Investor Contact
Rainmaker Worldwide Inc.
Michael O’Connor
Executive Chairman and Chief Executive Officer
info@rainmakerww.com