Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 65

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 1
Chunk 65
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4, 2025 (“Closing Date”),
we entered into the SPA with an institutional investor (“2025 Investor”) pursuant to which we agreed to issued and sell to
the 2025 Investor upon the terms and conditions set forth in the SPA on such date: (i) a Senior Secured Convertible Note in the original
principal amount of $5,500,000 which matures on the two-year anniversary of the Closing Date (the “Initial Note”); and (ii)
sixteen (16) warrants (the “Incremental Warrants”), each to purchase additional Notes in an original principal amount up
to $2,500,000 at an exercise price of $2,256,250, in substantially the same form as the Initial Note (Incremental Notes and together
with the Initial Note, the “Notes”). The Incremental Warrants and Initial Note were issued to 2025 Investor on the Closing
Date. The purchase price paid by 2025 Investor under the SPA for the Initial Note and Incremental Warrants was $4,963,750, which was
used by the Company to pay-off certain indebtedness, pay certain outstanding fees and expenses, acquisitions and general corporate purposes.
The Company also granted 2025 Investor registration rights in the shares of common stock issuable pursuant to the SPA and conversion
of the Notes. The Company and its subsidiaries also entered into a security agreement with or in favor of the 2025 Investor pursuant
to which the Company and its subsidiaries granted the 2025 Investor a security interest in certain property of the Company and its subsidiaries
to secure the Company’s obligations under the Notes. The Company also agreed to obtain stockholder approval for the issuance of
more than 19.99% of the issued and outstanding common stock in this financing.

On the Closing Date, as required by the SPA, stockholders
holding a majority of the voting power of the Company, approved (i) the issuance of the Initial Note, the Incremental Warrants and Incremental
Notes, all Interest Shares and all of the Conversion Shares and Incremental Conversion Shares (each as defined in the SPA) in excess of
19.99% (without regard to any limitation on conversion or exercise thereof) of the Company’s issued and outstanding common stock
at a price less than the minimum price required by the Nasdaq in accordance with Nasdaq Listing Rules 5635(b) and 5635(d); (ii) authorization
to complete a reverse split of our common stock; and