Company: LRHC
Filing Date: 2025-02-25
Form Type: PRE 14C
Source: 0001213900-25-016765
Chunk: 19

Company: La Rosa Holdings Corp.
Filing Date: 2025-02-25
Form: PRE 14C
Chunk 19
---
1:2) to one for one hundred (1:100) (the “Split Ratio Range”).
The form of the Reverse Split Amendment is attached to this Information Statement as Appendix A.

Background and Reasons for the Reverse Stock Split

The Board of Directors has
the authority, but not the obligation, in its sole discretion and without any further action on the part of the stockholders, to effect
the Reverse Stock Split within the Split Ratio Range at any time it believes to be most advantageous to our Company and stockholders in
the next 12 months. The exact ratio of the Reverse Stock Split, if effected, would be set at a whole number within the range as determined
by the Board of Directors in its sole discretion. The Reverse Stock Split Amendment would not change the number of authorized shares of
our Common Stock and the par value of our Common Stock would remain at $0.0001 per share. As of the date of this Information Statement,
we do not have any current plans, arrangements or understandings related to the issuance of any additional shares of Common Stock that
will become newly available as a result of the Reverse Stock Split.

On October 10, 2024, we received
a notification letter from the Nasdaq Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) notifying
us that, because the closing bid price for our Common Stock listed on Nasdaq was below $1.00 for 30 consecutive trading days, we no longer
meet the minimum bid price requirement for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2), requiring
a minimum bid price of $1.00 per share (the “Minimum Bid Price Requirement”).

In accordance with Nasdaq
Listing Rule 5810(c)(3)(A), we have a period of 180 calendar days from the date of notification, or until April 8, 2025, to regain compliance
with the Minimum Bid Price Requirement, during which the stock will continue to list on the Nasdaq.

The Reverse Stock Split would
potentially increase our bid price such that we meet the Minimum Bid Requirement required for maintaining the listing requirements for
the Nasdaq Capital Market. We currently do not meet the Nasdaq Minimum Bid Requirement. The Reverse Stock Split will not cause us to meet
all of the listing requirements for Nasdaq. However, we believe the Reverse Stock Split will increase our stock price which may help us
move towards eventually meeting the Minimum Bid Requirement. We