Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 65

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 65
---
osa 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 Company must
also file one or more additional registration statements for the resale of the Registrable Securities (as defined in the Registration
Rights Agreement), if necessary.

Pursuant to the Purchase Agreement, the Company
must use the net proceeds from the sale of the securities as follows: (A) at the Initial Closing, (i) $7,000,000 of net proceeds to acquire
Note Purchased Crypto (as defined in the Notes) as a treasury asset for the Company’s balance sheet, (ii) $2,000,000 of the net
proceeds to redeem a portion of the outstanding shares of the Series X Preferred Stock pursuant to the Redemption Agreement, (iii) $500,000
of the net proceeds will be kept in a controlled account to fund the redemption of remaining shares of