Rainwater Tech joins the SPAC crowd
Cloud ionization company moves forward with business combination
A number of companies have recently emerged that are tackling the problem of maximizing precipitation levels in areas that produce insufficient amounts for the local populace. Rainwater Tech is led by a former HP President and is employing a solution that claims strong augmentation results can be achieved via ground-based ionization of moisture laden particles that are already present in the air. Availability is planned for early 2023, and it will be offered to an array of potential customers including the public sector, other companies, agricultural entities, and additional groups that have an inherent need for this type of product.
Rainwater Tech claims that yields can be increased by approximately 10-20% and the effective radius of the solution covers about 50 miles from the primary mast location. The venture proposes to generate revenue by supplying the requisite infrastructure and data capabilities and, of course, charging regular subscription fees.
Another SPAC merger
Rainwater Tech just went through a merger with special purpose acquisition company dMY VI which had raised about $250 million via an IPO in October of last year. My general thoughts on the SPAC approach to corporate growth were given a bit more heft in a prior post (Astra Space given delisting warning) thus I’ll forego the extended soliloquy here. Suffice it to say that any number of companies now are taking this route when relatively light on proven products and services and heavy on the need to capitalize in a manner that shirks conventional approaches that have far more stipulations and oversight attached.
Potential success…
Charged particle modification and a resultant increase in effective precipitation has been a notion of theoretical supposition for a number of years. Relatively positive results have cropped up under lab conditions and field trials thus from a practical standpoint we certainly have somewhat tangible results from more than one group. Indeed, a couple of studies I’ve examined showed positive rainfall differences that ranged from 12-20+% with predictive p-values in the attention-getting .005’s to the high 40’s. Taking a comically wide berth and a general amalgamation we can effectively view the data as showing that, yes, there does seem to be a positive expected result when using this approach.
The primary question – does Rainwater have a system that actually works, can be implemented effectively and efficiently, and will they generate revenue before all of the cash has been disbursed? The trail of SPAC-based companies that have gone south due to vaporware or mismanagement grows by the week, but if they do indeed have a viable product it could absolutely make a difference in a number of locales.
