Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 74

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 74
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, we also formed LR Realty
Spain, S.L., our wholly owned subsidiary in Spain.

We
continuously search for potential acquisition targets. Management is in discussions with several franchisees and other entities; however,
any future agreements may have terms that are materially different than the terms of completed acquisitions. We cannot guarantee that
the Company will actually enter into any binding acquisition agreements with any of those companies. If we do, we cannot assure you that
the terms of such acquisitions will be substantially the same or better for the Company than those of completed acquisitions.

On September 12, 2025, the Company dissolved one
of its wholly owned subsidiaries, Baxpi Holdings LLC, which was non-operational, in an effort to simplify the Company’s corporate
structure.

On November 12, 2025, the Company engaged with a special advisor in
connection with the Company’s new strategy to leverage its real estate platform and access to new capital in order to expand into
the AI ecosystem through strategic acquisitions, partnerships, and the development of next-generation data center facilities.

41

Recent
Developments

Convertible Note Facility

On November 12, 2025, the Company entered into
a Securities Purchase Agreement (the “Purchase Agreement”) with certain institutional investors (the “Investors”),
pursuant to which the Company agreed to issue and sell, and the Investors agreed to purchase, in multiple closings, a new series of senior
secured convertible notes of the Company in an aggregate original principal amount of up to $250,000,000 (the “Notes”), subject
to the satisfaction or waiver of certain closing conditions, including, inter alia, entering into the Redemption Agreement,
and Amended Employment Agreement (as such terms are defined below), in each case between the Company and Mr. Joseph La Rosa, and the Company
issuing to an Investor certain Token Rights (as defined in the Purchase Agreement).

Pursuant to the Purchase Agreement, on November
12, 2025, the Company issued a Token Right (the “Token Right”) to certain Investors, pursuant to which the holder will be
entitled to receive upon exercise of the Token Right and for no further consideration an aggregate number of Right Tokens (as defined
therein) equal to the sum of (i) fifty percent (50%) of any and all Tokens (as defined in the Token Right) purchased by the Company using
the net proceeds of each Closing (as defined in the Notes) and (ii) twenty-five percent