La Rosa Holdings increases equity purchase facility to $1 billion

La Rosa Holdings Corp. (NASDAQ:LRHC), a company currently valued at $9.4 million with annual revenues of $78.04 million, announced Friday that it has amended its equity purchase facility agreement with an institutional investor, increasing the total commitment amount from $150 million to $1 billion in newly issued common shares. The amendment was entered into on August 18, 2025, according to a statement released by the company. According to InvestingPro data, the company has been quickly burning through cash, with negative EBITDA of $10.12 million in the last twelve months.

Under the amended and restated agreement, La Rosa Holdings retains the right to issue and sell up to $1 billion in common stock to the investor, subject to certain conditions. All other material terms and conditions of the agreement remain substantially unchanged from the original agreement dated August 4, 2025. While the company maintains a healthy current ratio of 2.12, indicating strong short-term liquidity, InvestingPro analysis reveals 12 additional key financial metrics that subscribers can access to better understand the company’s financial position.

As part of the amended agreement, La Rosa Holdings is required to seek stockholder approval for the issuance of common shares exceeding the previously approved $150 million. The company must call and hold a stockholder meeting within 60 days of the agreement date, or alternatively, obtain written consent from holders of a majority of its outstanding common shares. The company is also required to file related proxy or information statements with the Securities and Exchange Commission (SEC) in accordance with regulatory requirements.

In connection with the amended facility, A.G.P./Alliance Global Partners is serving as financial advisor and Curvature Securities, LLC as placement agent. La Rosa Holdings has agreed to pay cash compensation of 1.4985% and 0.1665%, respectively, of the proceeds received under the amended agreement at the time of each placement.

Additionally, La Rosa Holdings entered into an amended and restated registration rights agreement with the investor to provide for the resale of the shares issued under the facility. The company is required to file a registration statement for the resale of these shares within 60 days of the agreement date and to have it declared effective by the SEC within specified timeframes.

The common shares to be issued under the amended facility will be offered and sold in a transaction exempt from SEC registration under Section 4(a)(2) of the Securities Act.

This information is based on a statement from the company’s filing with the SEC.

In other recent news, La Rosa Holdings Corp. has regained compliance with Nasdaq’s listing requirements by achieving stockholders’ equity of $7.6 million, surpassing the minimum requirement of $2.5 million. The company also announced it has extinguished a majority of its outstanding warrants through exchange agreements, including transactions with CEO Joseph La Rosa, to meet Nasdaq’s minimum bid price requirement. Additionally, La Rosa Holdings has launched a proprietary AI-powered communication bot to enhance agent recruiting and support operations. This AI system will streamline the recruitment process by qualifying prospects and providing multilingual support. In another development, La Rosa Holdings has secured rights to market and sell units of the IBIS Romana Bayahibe luxury project in the Dominican Republic. This strategic agreement involves La Rosa Realty LLC and The Agency Dominican Republic, with La Rosa serving as the exclusive sales agent for IBIS sales in Puerto Rico. Furthermore, the company launched version 4.0 of its My Agent Account platform, which now includes a Transaction Management module aimed at improving efficiency and reducing costs for agents.

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