Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 198

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 198
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 Company must
also file one or more additional registration statements for the resale of the Registrable Securities (as defined in the Registration
Rights Agreement), if necessary.

Pursuant to the Purchase Agreement, the Company
must use the net proceeds from the sale of the securities as follows: (A) at the Initial Closing, (i) $7,000,000 of net proceeds to acquire
Note Purchased Crypto (as defined in the Notes) as a treasury asset for the Company’s balance sheet, (ii) $2,000,000 of the net
proceeds to redeem a portion of the outstanding shares of the Series X Preferred Stock pursuant to the Redemption Agreement, (iii) $500,000
of the net proceeds will be kept in a controlled account to fund the redemption of remaining shares of the Series X Preferred Stock in
accordance with the terms of the Redemption Agreement, and (iv) any remaining proceeds, not to exceed $400,000, from the Initial Closing
for general corporate purposes, working capital, acquisitions and other strategic transactions, and (B) at any Additional Closing, ninety
percent (90%) of net proceeds must be used to acquire Note Purchased Crypto as a treasury asset for the Company’s balance sheet,
and any remaining proceeds from the Additional Closing for general corporate purposes, working capital, acquisitions and other strategic
transactions, with certain limitation that require consent of the Lead Buyer (as defined in the Purchase Agreement).

A.G.P./Alliance Global Partners served as placement
agent in connection with the offering and will receive cash compensation not exceeding 7% of the gross proceeds of each Closing.

Redemption Agreement

In connection with the Purchase Agreement, on November 12, 2025, the
Company and Mr. La Rosa entered into a redemption agreement (“Redemption Agreement”), pursuant to which, on the Initial Closing
Date the Company will redeem and immediately cancel and return to the status of “blank check” preferred stock of the Company,
a number of Mr. La Rosa’s shares of Series X Preferred Stock such that, immediately after such redemption, he will own shares of
Series X Preferred Stock representing not less than 80% of the total voting power of the Company for a redemption price of $2,000,000
payable on the Initial Closing Date, and $500,000 contingently payable upon the satisfaction by the Company of its SEC filing requirements
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) for four consecutive