Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 197

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 197
---
 respect to the Initial Closing either the Initial Closing Date or the date of the Purchase Agreement or
(y) with respect to each Additional Closing, such applicable Additional Closing date, provided, however, that in no event may the conversion
price be less than the Floor Price (as defined in the Notes) (subject to customary adjustments and the applicable limitations under Nasdaq
Listing Rules), which as of the date of the Purchase Agreement is $0.79. The Notes will bear interest at a rate of ten percent (10%) per
annum, payable monthly in arrears, mature twenty-four (24) months from the date of issuance and contain customary covenants and events
of default (upon which the interest rate will increase to a rate of nineteen percent (19%) per annum).

36

La
Rosa Holdings Corp. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements

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 and (ii) twenty-five percent (25%) of any and all Tokens purchased by the Company using the net proceeds
of any Other Financing (as defined therein). The Token Right can be exercised at any time beginning on the date that is the sixty (60)
day anniversary of the issuance date of the Token Right and ending on the ten (10) year anniversary of the issuance date of the Token
Right.

In connection with the Purchase Agreement, on
November 12, 2025, the Company also entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with
the Investors, pursuant to which the Company agreed to file a registration statement on Form S-1 with the Securities and Exchange Commission
(the “SEC”) to register the resale of all of the Conversion Shares and shares of common stock otherwise issuable pursuant
to the Notes within 20 calendar days after the Initial Closing Date and to have such registration statement be declared effective by the
SEC within 60 calendar days of the Initial Closing Date. Pursuant to the terms of the Registration Rights Agreement, the