Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 2153

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 2153
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 of the outstanding and unpaid principal amount and accrued and unpaid interest into shares of the Company’s Common Stock
at a price equal to the offering price of the IPO multiplied by 0.75, with certain provisions. The Company also issued warrants to the
lenders that are exercisable for 50,000 shares of the Company’s Common Stock and (i) have a term of 60 months; (ii) have full ratchet
anti-dilution protection provisions; (iii) are exercisable for a number of shares of the Company’s Common Stock equal to the number
of shares that would be issued upon full conversion of this Note; and (iv) have an exercise price equal to the lower of: (A) $5.00 per
share, or (B) the price per share of any subsequent offering undertaken by the Company. The Company also granted to the lenders: (i) upon
the repayment of the loan, 30,000 shares of the Company’s Common Stock (based on an assumed offering price of $5.00 per share, (ii)
the right to participate in any future financings, (iii) additional “piggy back” registration rights, (iv) the right to rollover
the principal and interest due to acquire Company securities in any future public or private offering, (v) extensive and non-customary
default provisions in the note, and (vi) certain other affirmative and negative covenants. The loan had a maturity of the earlier of (i)
six months from the date of issue or (ii) upon the completion of the Company’s IPO. The Company and Emmis Capital agreed to extend
the maturity date of the loan to the earlier of the date when the Common Stock is listed on Nasdaq, or July 31, 2023. The parties agreed
that in the event of listing of the Common Stock on Nasdaq prior to July 31, 2023, on the effective date of the registration statement,
the Company would issue to Emmis Capital shares of Common Stock valued at the IPO price, in lieu of a cash, of the $5,000 delinquency
penalty payable from May 14, 2023 to July 31, 2023. In the event the listing was not completed by July 31, 2023, then the delinquency
fee would be paid in cash. In addition, Emmis Capital agreed to waive any and all events of default existing under the securities purchase
ag