Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 79

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 79
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5 Financing and June 2025
Exchange Agreement

On
February 4, 2025 (“Closing Date”), the Company entered into the SPA with an institutional investor (“2025 Investor”)
pursuant to which it agreed to issue 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