SoFi CEO enters prepaid forward contract on 1.5 million shares
Rain Enhancement Technologies Holdco, Inc. (NASDAQ:RAIN), a micro-cap company with a market value of approximately $25 million and currently trading at $3.34, has amended the employment agreement with its Chief Executive Officer, Randall Seidl, to provide a retention bonus of $5,820,000, according to a statement released in a Securities and Exchange Commission filing. According to InvestingPro data, the stock has shown significant price volatility, with shares down about 70% year-to-date.
The amendment, effective June 27, replaces a previously disclosed unsecured note payable to the CEO, which was not issued, with a cash retention bonus. Under the terms of the new agreement, the bonus will be paid as a lump sum, less required withholdings and deductions, on the earliest of three possible dates: December 31, 2028, the date on which the company group terminates Mr. Seidl’s employment without cause, or the date on which a change of control is consummated.
The filing states that the agreement was made between Rain Enhancement Technologies, Inc., a wholly-owned subsidiary of Rain Enhancement Technologies Holdco, Inc., and Mr. Seidl. The company’s securities, including its Class A common stock and redeemable warrants, are listed on the Nasdaq Stock Market under the symbols RAIN and RAINW, respectively.
This information is based on a press release statement included in the company’s filing with the SEC.
In other recent news, Rain Enhancement Technologies Holdco, Inc. has made significant changes to its board of directors and director compensation agreements. The board expanded from five to seven members, appointing Marcus Peperzak and Robert Reardon as new independent directors. Both Peperzak and Reardon will serve on the Audit Committee, with their terms staggered to expire at different annual meetings of stockholders. Along with their appointments, they entered into indemnity and Director Agreements, although the grants of restricted stock mentioned in these agreements have been deferred. Non-employee directors will receive $50,000 in annual cash compensation, paid quarterly, and a yearly restricted stock grant valued at $100,000, vesting after one year. Additionally, Director Agreements were signed with Lyman Dickerson, Alexandra Steele, and Christopher Riley. Dickerson’s agreement includes an initial restricted stock grant valued at $2 million, vesting over three years, while Riley’s agreement specifies an annual $50,000 stock grant. These updates are part of the company’s ongoing efforts to refine its governance structure.
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