La Rosa Holdings Announces Debt Restructuring; Conversion Rights Halted and Principal & Interest Payments Deferred Until February 2025
La Rosa Holdings Corp. (NASDAQ: LRHC) has announced a debt restructuring with its noteholder, involving three outstanding notes issued in February, April, and July 2024. Key points of the restructuring include:
1. Repayment of $200,000 of the debt
2. Deferral of all principal and interest payments until February 1, 2025
3. Extension of maturity dates to August 1, 2025
4. Halting of note conversions unless the Company fails to comply or defaults
This restructuring is expected to reduce the Company's total debt under the notes by approximately 9.5%. La Rosa reaffirms its target of achieving a $100 million annualized revenue exit run rate for 2024, with profitability expected in 2025. The Company plans additional acquisitions by year-end, primarily funded with stock, and reports over 400 new agents onboarded since June 1, 2024.
La Rosa Holdings Corp. (NASDAQ: LRHC) ha annunciato una ri-strutturazione del debito con i suoi obbligazionisti, riguardante tre note scadute emesse a febbraio, aprile e luglio 2024. I punti chiave della ristrutturazione includono:
1. Rimborso di $200.000 del debito
2. Differimento di tutti i pagamenti di capitale e interessi fino al 1 febbraio 2025
3. Estensione delle scadenze a 1 agosto 2025
4. Interruzione delle conversioni delle note a meno che la Società non rispetti o vada in default
Questa ristrutturazione dovrebbe ridurre il debito totale della Società sotto le note di circa 9.5%. La Rosa riafferma il suo obiettivo di raggiungere un tasso di uscita di ricavi annualizzati di $100 milioni per il 2024, con una redditività prevista per il 2025. La Società prevede ulteriori acquisizioni entro la fine dell’anno, principalmente finanziate con azioni, e riporta oltre 400 nuovi agenti arruolati dal 1 giugno 2024.
La Rosa Holdings Corp. (NASDAQ: LRHC) ha anunciado una reestructuración de la deuda con sus tenedores de notas, que involucra tres notas pendientes emitidas en febrero, abril y julio de 2024. Los puntos clave de la reestructuración incluyen:
1. Reembolso de $200,000 de la deuda
2. Aplazamiento de todos los pagos de capital e intereses hasta el 1 de febrero de 2025
3. Extensión de las fechas de vencimiento hasta el 1 de agosto de 2025
4. Detención de las conversiones de notas a menos que la Compañía no cumpla o entre en default
Se espera que esta reestructuración reduzca la deuda total de la Compañía bajo las notas en aproximadamente 9.5%. La Rosa reafirma su objetivo de lograr un tasa de salida de ingresos anualizados de $100 millones para 2024, con rentabilidad esperada en 2025. La Compañía planea adquisiciones adicionales para fin de año, financiadas principalmente con acciones, y reporta más de 400 nuevos agentes incorporados desde el 1 de junio de 2024.
라 로사 홀딩스 주식회사 (NASDAQ: LRHC)는 부채 재구성을 발표했습니다. 이는 2024년 2월, 4월 및 7월에 발행된 세 가지 미결제 어음과 관련이 있습니다. 재구성의 주요 사항은 다음과 같습니다:
1. 부채의 $200,000 상환
2. 모든 원금 및 이자 지급의 연기, 2025년 2월 1일까지
3. 만기일을 2025년 8월 1일까지 연장
4. 회사가 의무를 이행하지 않거나 기본적으로 불이행하지 않는 한 어음 변환 중단
이 재구성은 이 어음에 따른 회사의 총 부채를 약 9.5% 줄일 것으로 예상됩니다. 라 로사는 2024년 연간 수익 목표 1억 달러 달성 목표를 재확인하며, 2025년에는 수익성이 기대됩니다. 회사는 연말까지 주식으로 주로 자금을 지원받아 추가 인수 계획을 세우고 있으며, 2024년 6월 1일 이후로 400명 이상의 새로운 에이전트가 채용되었다고 보고하고 있습니다.
La Rosa Holdings Corp. (NASDAQ: LRHC) a annoncé une restructuration de la dette avec ses détenteurs de billets, impliquant trois billets en circulation émis en février, avril et juillet 2024. Les points clés de la restructuration comprennent :
1. Remboursement de 200 000 $ de la dette
2. Report de tous les paiements de capital et d'intérêts jusqu'au 1er février 2025
3. Extension des dates d'échéance au 1er août 2025
4. Suspension des conversions de billets sauf si la Société ne respecte pas ou fait défaut
Cette restructuration devrait réduire la dette totale de la Société sous les billets d'environ 9,5%. La Rosa réaffirme son objectif d'atteindre un taux de sortie de revenus annualisé de 100 millions $ pour 2024, avec une rentabilité attendue en 2025. La Société prévoit d'autres acquisitions d'ici la fin de l'année, principalement financées par des actions, et fait état de plus de 400 nouveaux agents intégrés depuis le 1er juin 2024.
La Rosa Holdings Corp. (NASDAQ: LRHC) hat eine Schuldenrestrukturierung mit seinen Anleihegläubigern angekündigt, die drei ausstehende Anleihen betrifft, die im Februar, April und Juli 2024 ausgegeben wurden. Die wichtigsten Punkte der Restrukturierung sind:
1. Rückzahlung von 200.000 $ der Schulden
2. Stundung aller Haupt- und Zinszahlungen bis zum 1. Februar 2025
3. Verlängerung der Fälligkeitstermine bis zum 1. August 2025
4. Stopp der Anleiheumwandlungen, es sei denn, das Unternehmen erfüllt seine Verpflichtungen oder gerät in Verzug
Diese Restrukturierung wird voraussichtlich die Gesamtschulden des Unternehmens unter den Anleihen um etwa 9,5% reduzieren. La Rosa bekräftigt ihr Ziel, eine jährliche Einnahmesumme von 100 Millionen $ für 2024 zu erreichen, wobei eine Rentabilität für 2025 erwartet wird. Das Unternehmen plant bis Ende des Jahres weitere Übernahmen, die hauptsächlich durch Aktien finanziert werden, und berichtet über seit dem 1. Juni 2024 über 400 neue Agenten gewonnen zu haben.
- Debt restructuring reduces total debt under notes by approximately 9.5%
- Deferral of principal and interest payments until February 2025 improves short-term cash flow
- Extension of maturity dates to August 1, 2025 provides more time for repayment
- Halting of note conversions protects against potential share dilution
- Over 400 new agents onboarded since June 1, 2024, indicating strong growth
- Company targets $100 million annualized revenue exit run rate for 2024
- Profitability expected in 2025
- Company required to repay $200,000 of debt immediately
- Debt restructuring indicates potential financial challenges
- Planned acquisitions to be funded primarily with stock may lead to shareholder dilution
Insights
This debt restructuring is a strategic move that significantly improves La Rosa Holdings' financial position. The key benefits include:
- Reduction of total debt under the notes by
9.5% - Deferral of principal and interest payments until February 2025
- Extension of maturity dates to August 1, 2025
- Halting of note conversions by the holder
These changes provide La Rosa with increased financial flexibility and breathing room to focus on growth initiatives. The company's target of
The strategy to fund future acquisitions primarily with stock is noteworthy, as it allows for expansion without incurring additional debt. However, this approach may lead to dilution for existing shareholders. The onboarding of 400 new agents since June 1, 2024, indicates strong organic growth potential.
While the restructuring is positive, investors should monitor the company's ability to meet its growth targets and achieve profitability as projected. The real estate market conditions and the company's execution of its acquisition strategy will be critical factors in determining long-term success.
La Rosa Holdings' debt restructuring comes at a important time for the real estate industry. The company's agent-centric, technology-integrated model positions it well in a market that's increasingly demanding digital solutions and personalized services. The restructuring allows La Rosa to capitalize on current market trends:
- Consolidation in the real estate brokerage sector
- Increasing demand for tech-enabled real estate services
- Shift towards more flexible and efficient business models
The company's ability to onboard 400 new agents in a short period suggests strong appeal in its business model. This growth in agent numbers could translate to increased market share and revenue, especially if the company can maintain its technology edge.
However, the real estate market faces headwinds, including rising interest rates and economic uncertainty. La Rosa's success will depend on its ability to navigate these challenges while executing its growth strategy. The focus on stock-based acquisitions could be a double-edged sword, potentially accelerating growth but also risking shareholder dilution.
Investors should watch for La Rosa's progress in closing planned acquisitions and its ability to integrate these new businesses effectively. The company's performance in the next six months will be critical in assessing whether it can achieve its ambitious revenue and profitability targets.
Restructuring benefits financial position and reduces debt under the notes by approximately
Reaffirms target of
with profitability expected in 2025
Celebration, FL, Sept. 26, 2024 (GLOBE NEWSWIRE) -- La Rosa Holdings Corp. (NASDAQ: LRHC) (“La Rosa” or the “Company”), a holding company for six agent-centric, technology-integrated, cloud-based, multi-service real estate segments, today announced that it has entered into an amendment with its noteholder to restructure debt under three outstanding notes issued to the holder in February, April, and July 2024. As part of the amendment, the Company agreed to repay to the holder
Joe La Rosa, CEO of La Rosa Holdings, commented, “We believe that this debt restructuring is an important step in strengthening our financial foundation as we accelerate our growth momentum. By consolidating payments under the outstanding notes, deferring principal and interest payments until February 2025 and the holder agreeing to halt conversions of the notes, we are significantly improving our financial position. This not only reduces our debt under the notes by approximately
“We have additional acquisitions that we hope to close by the end of the year, which we plan to primarily fund with stock. We believe this strategy will allow us to expand our market footprint while minimizing additional debt. Additionally, as previously announced over 400 new agents onboarded since June 1, 2024. We believe that this fact demonstrates our ability to scale effectively, driven by our agent-centric, technology-integrated model. Within the next six months, we expect the Company to be in a significantly stronger position, with improvements in both our top and bottom lines through targeted acquisitions and organic growth. We aim at achieving an annualized revenue run rate of
About La Rosa Holdings Corp.
La Rosa Holdings Corp. (Nasdaq: LRHC) is disrupting the real estate industry by offering agents a choice between a revenue share model or an annual fee-based model with
La Rosa's business model is structured around internal services for agents and external services for the public, including residential and commercial real estate brokerage, franchising, real estate brokerage education and coaching, and property management. The Company has 24 La Rosa Realty corporate real estate brokerage offices and branches located in Florida, California, Texas, Georgia, and Puerto Rico. The Company also has 13 La Rosa Realty franchised real estate brokerage offices and branches and two affiliated real estate brokerage offices in the United States and Puerto Rico.
For more information, please visit: https://www.larosaholdings.com.
Stay connected with La Rosa, sign up for news alerts here: larosaholdings.com/email-alerts.
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s current expectations that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, our ability to successfully integrate acquisitions into our business operations, customer acceptance of new services, the demand for the Company’s services and the Company’s customers' economic condition, the impact of competitive services and pricing, general economic conditions, the successful integration of the Company’s past and future acquired brokerages, the effect of the recent National Association of Realtors' landmark settlement on our business operations, and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission (the "SEC”). You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and other reports and documents that we file from time to time with the SEC, including our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024. Forward-looking statements contained in this press release are made only as of the date of this press release, and La Rosa does not undertake any responsibility to update any forward-looking statements in this release, except as may be required by applicable law. References and links to websites have been provided as a convenience, and the information contained on such websites has not been incorporated by reference into this press release.
For more information, contact: info@larosaholdings.com
Investor Relations Contact:
Crescendo Communications, LLC
David Waldman/Natalya Rudman
Tel: (212) 671-1020
Email: LRHC@crescendo-ir.com
FAQ
What are the key terms of La Rosa Holdings' (LRHC) debt restructuring announced on September 26, 2024?
How much will La Rosa Holdings (LRHC) reduce its debt through the restructuring announced on September 26, 2024?
What is La Rosa Holdings' (LRHC) revenue target for 2024 as stated in the September 26, 2024 announcement?
When does La Rosa Holdings (LRHC) expect to reach profitability according to the September 26, 2024 press release?
How many new agents has La Rosa Holdings (LRHC) onboarded since June 1, 2024?
