On Thursday, La Rosa Holdings Corp (NASDAQ: LRHC) announced that it has entered into an amendment with its bondholder to restructure the debt under three outstanding bonds issued to the holder in February, April and July 2024.
As part of the amendment, the Company agreed to reimburse 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.
Beginning February 1, 2025, the Company will pay monthly payments to the holder, which will be applied first to the July Note until paid in full and then to the April Note until paid in full, after which such payments will be applied to the February Note.
Read also: EXCLUSIVE: La Rosa to acquire real estate company with over 950 agents, targets 4,000 agents and strong growth
In addition, the maturity dates of the three notes were extended to August 1, 2025, and the holder agreed not to effect any conversion of the notes unless the Company defaults on the amendment or an event of default under the notes occurs.
Joe La Rosa, CEO of La Rosa Holdings, commented: “This not only reduces our debt under the notes by approximately 9.5%, but also gives us the flexibility to reinvest in the business, focus on expansion and execute our strategic acquisition plans.”
“We have additional acquisitions that we expect to close before the end of the year, which we plan to finance primarily with equity. We believe this strategy will allow us to expand our market presence while minimizing additional debt.”
“Over the next six months, we expect the Company to be in a significantly stronger position, with improvements in both our revenue and bottom line through targeted acquisitions and organic growth.”
“Our goal is to achieve an annualized revenue run rate of $100 million by the end of 2024 and reach profitability in 2025, assuming all of our planned acquisitions are consummated before the end of 2024,” La Rosa added.
Price Action: LRHC shares closed up 3.26% at $0.6714 on Wednesday.
Read also:
Market news and data provided by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.