La Rosa Holdings Corp. Enters into Material Definitive Agreement with Institutional Accredited Investor

On January 8, 2025, La Rosa Holdings Corp. (NASDAQ:LRHC) finalized an agreement with an institutional accredited investor, leading to the waiver of an Event of Default under several senior secured promissory notes. The agreement, known as the “Waiver,” pertains to notes dated February 20, 2024 (First Note), April 1, 2024 (Second Note), and July 16, 2024 (Third Note), along with related warrants.

According to the terms outlined in the waiver, the Holder relinquishes rights to default penalties, default interest, and acceleration of owed amounts due to the Company’s failure to ensure an additional debtor joinder under the security agreements. However, the Holder retains specified rights under the notes and warrants, including the ability to convert notes into common stock under certain conditions.

A key provision of the agreement stipulates that the Company must promptly repay 100% of cash proceeds raised from the sale of securities, post its Form S-3 filing in late November 2024, towards the repayment of the Notes. Importantly, the waiver encompasses the waiver of any potential default under the notes, except those specifically addressed in the agreement.

Moreover, the Holder waived restrictions on the Company’s participation in a Variable Rate Transaction concerning a future financing arrangement. This waiver signals flexibility for the Company’s financial obligations as long as all outstanding amounts under the Notes are fully repaid at the closure of the said financing.

The details of the Waiver have been summarized and are complemented by the official document, filed as Exhibit 4.1 in the Current Report on Form 8-K with the Securities and Exchange Commission.

Incorporating the information from Item 1.01, the Company has reflected the creation of a direct financial obligation or an obligation under an off-balance sheet arrangement in its recent operations.

The Company’s current filings also include Exhibit 104 – the Cover Page Interactive Data File. The signing of the report on January 10, 2025, was duly authorized by Joseph La Rosa, the Chief Executive Officer of La Rosa Holdings Corp.

This recent agreement between La Rosa Holdings Corp. and the institutional accredited investor signifies a strategic move towards addressing financial obligations and optimizing operational efficiency.

This news brief contains forward-looking statements and should not be considered definitive until filed and accepted by relevant regulatory bodies.

Please refer to the formal SEC filing for detailed information and disclaimers.

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.

About La Rosa

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).