Company: LRHC
Filing Date: 2025-03-07
Form Type: DEF 14C
Source: 0001213900-25-021334
Chunk: 18

Company: La Rosa Holdings Corp.
Filing Date: 2025-03-07
Form: DEF 14C
Chunk 18
---
 Directors to be in the best interests of our stockholders.

The Board of Directors will retain the authority not to effect the Reverse Stock Split even though it has already obtained stockholder approval. Thus, the Board of Directors, at its discretion, may cause the filing of the Reverse Stock Split Amendment to effect a Reverse Stock Split or abandon it and effect no Reverse Stock Split if it determines that such action is not in the best interests of our Company and stockholders.

Purpose of the Reverse Stock Split

The Board of Directors is notifying stockholders of the proposed Reverse Stock Split in connection with the plan to maintain listing of our Common Stock on Nasdaq. The Board of Directors believes that the consummation of the Reverse Stock Split and the continued listing of our Common Stock on Nasdaq will make our Common Stock more attractive to a broader range of institutional and other investors. Accordingly, for these and other reasons described in this Information Statement, we believe that effecting the Reverse Stock Split is in the Company’s and our stockholders’ best interests.

We believe that the Reverse Stock Split will improve our ability to maintain listing on Nasdaq. Nasdaq requires, among other items, an initial bid price of least $4.00 per share and following initial listing, maintenance of a continued price of at least $1.00 per share. A decrease in the number of outstanding shares of our Common Stock resulting from a Reverse Stock Split should, absent other factors, increase the per share market price of our Common Stock, although we cannot provide any assurance that our minimum bid price would remain over the Minimum Bid Price Requirement of Nasdaq following the Reverse Stock Split.

Additionally, we believe that the Reverse Stock Split will make our Common Stock more attractive to a broader range of institutional and other investors, as we have been advised that the current market price of our Common Stock may affect its acceptability to certain institutional investors, professional investors and other members of the investing public. As previously discussed, many brokerage houses and institutional investors have internal policies and practices that either prohibit them from investing in low-priced stocks or tend to discourage individual brokers from recommending low-priced stocks to their customers. In addition, some of those policies and practices may function to make the processing of trades in low-priced stocks economically unattractive to brokers. Moreover, because brokers’ commissions on low-priced stocks generally represent a higher percentage of the stock price than commissions on higher-priced stocks, the current average price per share of Common Stock can result in individual stockholders paying transaction costs representing a higher percentage of their total share value than would be