La Rosa Holdings Corp. Enters into Redemption Agreement with Institutional Investor

La Rosa Holdings Corp. (NASDAQ: LRHC) recently disclosed in a Form 8-K filing with the SEC that the company has entered into a Redemption Agreement with an institutional accredited investor holding warrants for 2,446,634 shares of La Rosa’s common stock. The agreement, dated January 22, 2025, outlines the redemption and cancellation of these warrants for a total Redemption Price of $379,082.79, to be paid by La Rosa to the Holder by February 3, 2025.

This move follows prior securities purchase agreements between La Rosa and the Holder, as detailed in earlier Form 8-K filings on April 5, 2024, and July 19, 2024. The Redemption Agreement specifies that upon receipt of the Redemption Price, the Warrants will be fully redeemed, canceled, and terminated. During the period from January 22, 2025, to February 3, 2025, the Holder is restricted from exercising any of the Warrants, either partially or in full. Failure to pay the Redemption Price by the specified date will render the Redemption Agreement null and void.

Furthermore, La Rosa and the Holder confirmed in the Redemption Agreement that certain warrants issued previously had been fully exercised or canceled before January 22, 2025, as outlined in the Agreement terms.

In a related development, an Amendment was made to a prior Waiver agreement between La Rosa and the Holder, which had waived an Event of Default under senior secured promissory notes. The Amendment, signed on January 22, 2025, stipulates that proceeds raised by La Rosa from the sale of securities must be used to repay the Redemption Price first and then the Notes. Any proceeds raised by the company before January 8, 2025, are excluded, and earlier proceeds received by the Holder must be applied toward the Notes repayment. If the Redemption Agreement is invalidated, all proceeds paid to the Holder will be directed to the Notes repayment.

While this summary provides an overview of the Redemption Agreement and Amendment, the complete texts of these documents are available as Exhibits 10.1 and 10.2, respectively, in La Rosa’s Current Report on Form 8-K.

This marks a strategic move by La Rosa Holdings Corp. to restructure its financial agreements and obligations in collaboration with its institutional investor, paving the way for enhanced financial stability and operational flexibility going forward.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read La Rosa’s 8K filing here.

La Rosa Company Profile

La Rosa Holdings Corp., through its subsidiaries, operates primarily in the residential real estate market in the United States. The company operates through five segments: Real Estate Brokerage Services (Residential), Franchising Services, Coaching Services, Property Management, and Real Estate Brokerage Services (Commercial).