Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 175

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 2
Chunk 175
---
,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 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 upon conversion of the Notes. The Company Group also entered into a Security and Pledge Agreement
with or in favor of the 2025 Investor pursuant to which the Company Group granted the 2025 Investor a security interest in substantially
all of the property and assets of the Company Group to secure the Company’s obligations under the SPA, Notes, Incremental Warrants,
Registration Rights Agreement and other Transaction Documents (as defined) and the Company’s subsidiaries guaranteed or obligations
of the Company thereunder. The Company also agreed to obtain shareholder 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, Joseph
La Rosa, as the majority stockholder of the Company, approved (i) the issuance of the Initial Note, the Incremental Warrants and Incremental
Notes, all shares of common stock issuable as interest thereunder and all of the Conversion Shares and Incremental Conversion Shares 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 (iii) authorization to increase the number of authorized shares of
our common stock to ensure that the Company has a sufficient number of authorized shares reserved for issuance to equal at least 200%
of the maximum number of shares issuable upon conversion of the Notes, as determined under the Securities Purchase Agreement. Such approval
was effective on March 27, 2025, or 20 days after the commencement of mailing of the definitive information statement regarding this approval
to the stockholders of the Company.

Third Amended Agent Plan

On February 4, 2025, the Compensation