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La Rosa Holdings Corp. Strengthens Balance Sheet by Redeeming and Extinguishing a Large Portion of Outstanding Warrants

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La Rosa Holdings Corp. (NASDAQ: LRHC) has announced the full redemption and extinguishment of outstanding warrants previously exercisable for 2,446,634 shares of common stock. The warrants, originally issued to an institutional accredited investor under securities purchase agreements dated April 1, 2024, and July 16, 2024, have been terminated through a Warrant Redemption and Cancellation Agreement signed on January 22, 2025.

CEO Joe La Rosa emphasized this action as a significant step in streamlining the company's capital structure and enhancing shareholder value. The company aims to achieve profitability in 2025 through acquiring additional real estate brokerage firms, growing its agent network, and expanding into new markets. Management believes there is a significant disconnect between the current market valuation and the company's true value.

La Rosa Holdings Corp. (NASDAQ: LRHC) ha annunciato il completo riscatto e l'estinzione dei warrants in circolazione precedentemente esercitabili per 2.446.634 azioni ordinarie. I warrants, originariamente emessi a un investitore istituzionale accreditato ai sensi di contratti di acquisto di titoli datati 1 aprile 2024 e 16 luglio 2024, sono stati annullati tramite un Accordo di Riscatto e Cancellazione dei Warrants firmato il 22 gennaio 2025.

Il CEO Joe La Rosa ha sottolineato questa azione come un passo significativo per semplificare la struttura del capitale della società e aumentare il valore per gli azionisti. L'azienda mira a raggiungere la redditività nel 2025 attraverso l'acquisizione di ulteriori agenzie immobiliari, l'espansione della rete di agenti e l'ingresso in nuovi mercati. La direzione ritiene che ci sia una notevole disconnessione tra la valutazione di mercato attuale e il vero valore dell'azienda.

La Rosa Holdings Corp. (NASDAQ: LRHC) ha anunciado el rescate completo y la extinción de warrants pendientes que previamente eran ejercitables para 2,446,634 acciones ordinarias. Los warrants, emitidos originalmente a un inversor institucional acreditado bajo contratos de compra de valores fechados el 1 de abril de 2024 y el 16 de julio de 2024, han sido cancelados a través de un Acuerdo de Rescate y Cancelación de Warrants firmado el 22 de enero de 2025.

El CEO Joe La Rosa enfatizó esta acción como un paso significativo para simplificar la estructura de capital de la empresa y aumentar el valor para los accionistas. La empresa tiene como objetivo alcanzar la rentabilidad en 2025 mediante la adquisición de firmas de corretaje inmobiliario adicionales, el crecimiento de su red de agentes y la expansión a nuevos mercados. La dirección cree que hay una desconexión significativa entre la valoración actual del mercado y el verdadero valor de la empresa.

라 로사 홀딩스 컴퍼니 (NASDAQ: LRHC)는 이전에 2,446,634 주식에 대해 행사 가능했던 모든 워런트를 완전 상환하고 소멸시켰습니다. 이 워런트는 2024년 4월 1일과 2024년 7월 16일 날짜의 증권 구매 계약에 따라 한 기관 인증 투자자에게 원래 발행된 것으로, 2025년 1월 22일에 서명된 워런트 환매 및 취소 계약을 통해 종료되었습니다.

CEO 조 라 로사는 이 조치를 회사의 자본 구조를 간소화하고 주주 가치를 높이는 중대한 단계로 강조했습니다. 회사는 추가 부동산 중개업체를 인수하고, 에이전트 네트워크를 성장시키며, 새로운 시장으로 확장함으로써 2025년에 수익성을 달성하는 것을 목표로 하고 있습니다. 경영진은 현재 시장 평가와 회사의 실제 가치 사이에 상당한 불일치가 있다고 믿고 있습니다.

La Rosa Holdings Corp. (NASDAQ: LRHC) a annoncé le rachat complet et l'extinction de warrants en circulation qui étaient auparavant exerçables pour 2 446 634 actions ordinaires. Les warrants, initialement émis à un investisseur institutionnel accrédité dans le cadre de contrats d'achat de titres datés du 1er avril 2024 et du 16 juillet 2024, ont été annulés par un Accord de Rachat et d'Annulation de Warrants signé le 22 janvier 2025.

Le PDG Joe La Rosa a souligné cette action comme une étape significative pour simplifier la structure du capital de l'entreprise et accroître la valeur pour les actionnaires. L'entreprise vise à atteindre la rentabilité en 2025 grâce à l'acquisition de supplémentaires sociétés de courtage immobilier, à la croissance de son réseau d'agents et à l'expansion dans de nouveaux marchés. La direction croit qu'il existe une déconnexion significative entre la valorisation actuelle du marché et la véritable valeur de l'entreprise.

La Rosa Holdings Corp. (NASDAQ: LRHC) hat die vollständige Rücknahme und Beendigung von ausstehenden Warrants angekündigt, die zuvor für 2.446.634 Stammaktien ausgeübt werden konnten. Die Warrants wurden ursprünglich am 1. April 2024 und 16. Juli 2024 im Rahmen von Wertpapierkaufverträgen an einen institutionellen akkreditierten Investor ausgegeben und wurden durch einen am 22. Januar 2025 unterzeichneten Rücknahme- und Stornierungsvertrag für Warrants beendet.

CEO Joe La Rosa betonte diese Maßnahme als einen bedeutenden Schritt zur Straffung der Kapitalstruktur des Unternehmens und zur Steigerung des Aktionärswerts. Das Unternehmen beabsichtigt, im Jahr 2025 rentabel zu werden, indem es zusätzliche Immobilienmaklerunternehmen akquiriert, sein Agentennetzwerk ausbaut und in neue Märkte expandiert. Das Management glaubt, dass eine erhebliche Diskrepanz zwischen der aktuellen Marktbewertung und dem tatsächlichen Wert des Unternehmens besteht.

Positive
  • Elimination of potential dilution from 2,446,634 warrant shares
  • Strengthening of balance sheet through warrant extinguishment
  • Strategic focus on achieving profitability in 2025
Negative
  • None.

Insights

The redemption of warrants exercisable for 2,446,634 shares represents a significant strategic move that immediately strengthens La Rosa Holdings' financial position in several ways:

  • By extinguishing these warrants, LRHC eliminates potential future share dilution that would have occurred if the warrants were exercised, protecting current shareholder value
  • This action simplifies the company's capital structure, making it more attractive to institutional investors who typically prefer cleaner balance sheets
  • The timing is particularly strategic, as it positions the company more favorably for its planned expansion through acquisitions

Management's assertion about a market valuation disconnect merits attention, especially considering the company's $10 million market cap. The real estate brokerage sector typically trades at higher multiples and the company's technology-integrated, multi-service platform approach could justify a premium valuation. The focus on achieving profitability in 2025 through strategic acquisitions and network expansion demonstrates a clear operational strategy, though investors should note the standard contingency clauses regarding future acquisitions.

The warrant redemption also signals management's confidence in the company's intrinsic value and future prospects. For a small-cap company in the real estate technology sector, maintaining a clean capital structure is important for attracting both institutional investment and potential strategic partners. This move effectively removes an overhang that could have pressured the stock price whenever warrant exercise became a possibility.

Celebration, FL, Jan. 28, 2025 (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 fully redeemed and extinguished all of its outstanding warrants (the “Warrants”) previously issued to an institutional accredited investor (the “Holder”). These Warrants, which were exercisable for 2,446,634 shares of common stock of the Company, have now been terminated in their entirety and are no longer exercisable, in accordance with the terms of the Warrant Redemption and Cancellation Agreement (the “Redemption Agreement”) signed by the parties on January 22, 2025.

The Company initially issued these Warrants under the securities purchase agreements dated April 1, 2024, and July 16, 2024, as previously disclosed in the Company’s Current Reports on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on April 5, 2024, and July 19, 2024.

Joe La Rosa, CEO of La Rosa, commented, “This milestone marks a significant step in our mission to streamline our capital structure and enhance shareholder value. By fully redeeming and extinguishing these Warrants, we are reinforcing our commitment to building a solid foundation for the Company’s sustained growth and long-term success. We believe there is a significant disconnect between the market valuation and the true value of the Company. As we focus on eliminating debt and strengthening our balance sheet, we remain dedicated to achieving profitability in 2025 by acquiring additional real estate brokerage firms, growing our agent network, and expanding into new markets."

In addition, Joe La Rosa, CEO of La Rosa Holdings Corp., will be featured in a podcast interview with Zack Morris on Wednesday, January 29th, 2025, at 4:00 PM EST. Click here to tune in.

The closings of the acquisitions mentioned in this press release are subject to, and contingent upon, the execution of definitive agreements and other related transaction documents by the parties, corporate approval and customary closing conditions. There can be no assurances that these transactions will be consummated.

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 100% agent commissions. Leveraging its proprietary technology platform, La Rosa empowers agents and franchisees to deliver top-tier service to their clients. The Company provides both residential and commercial real estate brokerage services and offers technology-based products and services to its sales agents and franchise agents.

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 26 La Rosa Realty corporate real estate brokerage offices and branches located in Florida, California, Texas, Georgia, North Carolina and Puerto Rico. The Company also has 6 La Rosa Realty franchised real estate brokerage offices and branches and 3 affiliated real estate brokerage offices in the United States and Puerto Rico. Additionally, the Company has a full-service escrow settlement and title company in Florida.

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 September 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

How many warrants did LRHC redeem and extinguish in January 2025?

LRHC redeemed and extinguished warrants that were exercisable for 2,446,634 shares of common stock.

When did LRHC sign the Warrant Redemption and Cancellation Agreement?

LRHC signed the Warrant Redemption and Cancellation Agreement on January 22, 2025.

What is LRHC's strategy for achieving profitability in 2025?

LRHC plans to achieve profitability by acquiring additional real estate brokerage firms, growing their agent network, and expanding into new markets.

When were the original warrants issued by LRHC?

The warrants were originally issued under securities purchase agreements dated April 1, 2024, and July 16, 2024.

La Rosa Holding Corp.

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