Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 66

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 66
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 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 quarters and certain other
four-quarter requirements set forth therein. Mr. La Rosa’s remaining shares of Series X Preferred Stock will be redeemed by the
Company at a subsequent time determined by the Company’s Board of Directors (the “Board”) or otherwise as set forth
in the Redemption Agreement as described below, in each case for no additional consideration. These redemptions of the Series X Preferred
Stock are conditioned upon stockholders’ approval and effectiveness of the Certificate of Amendment (as defined below).

37

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

The parties also agreed that in the event that the Company receives
any notice from a prospective investor (including the Investors) that such prospective investor would provide, or commit to provide, equity