EXCLUSIVE: La Rosa Restructures Debt, Defers Payments To Plan Expansion And Scale Revenue
On Thursday, La Rosa Holdings Corp (NASDAQ: LRHC) 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 the holder $200,000 of the debt under the notes, and all principal and interest payments under the notes have been deferred until February 1, 2025.
Starting February 1, 2025, the Company will pay monthly payments to the holder, which shall be first applied to the July note until it is repaid in the entirety and then to the April note until it is repaid in the entirety, following which such payments shall be applied to the February note.
Additionally, maturity dates under all three notes were extended to August 1, 2025, and the holder agreed not to effectuate any conversions of the notes unless the Company fails to comply with the amendment or there is an event of default under the notes.
Joe La Rosa, CEO of La Rosa Holdings, commented, "This not only reduces our debt under the notes by approximately 9.5% but also provides us with the flexibility to reinvest in the business, focus on expansion, and execute our strategic acquisition plans."
"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."
"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 $100 million by the end of 2024 and reaching profitability in 2025, assuming that all of our planned acquisitions are consummated before the end of 2024," La Rosa added.
Price Action: LRHC stock closed higher by 3.26% at $0.6714 on Wednesday.
Also Read:
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga?
This article EXCLUSIVE: La Rosa Restructures Debt, Defers Payments To Plan Expansion And Scale Revenue originally appeared on Benzinga.com
? 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.