Sphere 3D Corp. (ANY) this week came announcing several developments to the merger deal with Rainmaker Worldwide Inc.
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In a previous announcement Sphere 3D had said that it entered into a definitive merger agreement with Rainmaker on July 14, 2020. S3D Nevada Inc., a wholly-owned subsidiary of Sphere 3D was also the party in the said agreement. As part of the agreement, Sphere 3D will acquire all outstanding securities of Rainmaker.
In the recent development, Sphere 3D has shared that the previously agreed terms of the merger agreement now stand amended. Both companies agreed to change the ratio of Sphere 3D stock to be received by the shareholders of Rainmaker. The companies said that the amendment has been on the basis of correct and exact the market valuation of both companies. As per amended agreement, now the Sphere 3D will offer 1/15th of its common or preferred share to each holder of Rainmaker’s common or preferred share respectively. Previously the companies were in agreement on the ratio of 1/3rd for that.
Sphere 3D also agreed to pay Rainmaker an amount of $1.85 million in shape of secured convertible note. That was also part of amendment to make Rainmaker able to carry on with several of its growth plans. Rainmaker will particularly use those funds to complete its recent contracts and will also use them to enhance the production capacity of its equipments.
Rainmaker supplied cleaner, safer and portable water to its customers through its patented technology to produce that water. The company is in multi-year contracts with customer around the globe to generate revenue by providing Water-as-a-Service (WaaS).
CEO of Rainmaker, Michael Skinner said that the company has shown stronger growth as the prospective customers now recognize the financial and social benefit of WaaS offering. They are now well aware of the difference between WaaS and traditional water delivery options which way more expensive than the WaaS.
Skinner commented that the current agreement with Sphere 3D will provide Rainmaker with capital to be utilized for our expansion plans.