Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 52

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 52
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able for, or otherwise entitle
the holder thereof to receive, common stock, at an effective price per share less than the Conversion Price of the Series B Preferred
Stock then in effect, the Conversion Price of the Series B Preferred Stock will be reduced to equal the effective price per share in such
dilutive issuance.

Redemption

Under the Certificate of Designation, the Company
has the right to redeem all, but not less than all, of the then outstanding shares of Series B Preferred Stock at a price equal to the
greater of (i) the Conversion Amount being redeemed and (ii) the product of (1) the Conversion Rate with respect to the Conversion Amount
being redeemed multiplied by (2) the greatest Closing Sale Price (as defined therein) of the common stock on any trading day during the
period commencing on the date immediately preceding the date of the Company’s notice to the holder(s) of Series B Preferred Stock
of such redemption and ending on the trading day immediately prior to the date the Company makes the entire redemption payment required
to be made under the Certificate of Designation.

29

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

Dividends

The
Series B Preferred Stock bears no dividends.

Liquidation

In the event of a Liquidation Event (as defined
in the Certificate of Designation), the holders of the Series B Preferred Stock shall be entitled to receive in cash out of the assets
of the Company, whether from capital or from earnings available for distribution to its stockholders, before any amount shall be paid
to the holders of any shares of common stock, but pari passu with any parity stock then outstanding, an amount per share of Series B Preferred
stock equal to the greater of (A) 125% of the conversion amount and (B) the amount per share that such Series B Preferred Stock holder
would receive if converted into common stock immediately prior to the date of such payment.

Share
Repurchase Program

On
April 23, 2025, the Company’s Board of Directors approved a new Share Repurchase Program, which authorizes the Company to purchase
up to an aggregate of $500,000 of the Company’s outstanding shares of common stock in the open market in accordance with all applicable
securities laws and regulations. Repurchases under this program may be made at management’s discretion at the time and in the amounts
determined by the Chief Executive Officer