📑 What This Document Is 📰

This document is an SEC filing (specifically an 8-K) combined with the actual corporate action paperwork. Essentially, it is La Rosa Holdings Corp.'s official announcement that they are significantly changing the structure of their stock.

The most important thing to know is that the company is performing a 1-for-10 reverse stock split. This means that for every 10 shares of common stock you currently own, the company is combining them into just 1 new share.

👉 Why it matters: This is a defensive corporate move designed to boost the price per share and help the company maintain its listing on the Nasdaq stock exchange.

🏢 What La Rosa Holdings Does 🏠

In simple terms, La Rosa Holdings Corp. is a technology-driven real estate company, or "PropTech" (Property Technology) enterprise. They aim to transform the real estate industry by giving agents and franchisees more flexible compensation options, such as revenue-sharing models or 100% commission structures.

The company's business model is comprehensive, spanning multiple areas:

• Real Estate Brokerage: They provide services for both residential and commercial properties.
• Franchising & Operations: They support their network of agents and franchise partners.
• Services: They also offer education and coaching, as well as property management.

👉 The Scale: La Rosa operates across a wide geographic area, including 24 corporate-owned brokerage offices in Florida, California, Texas, Georgia, and Puerto Rico, in addition to five franchised offices and three affiliated brokerage locations in the U.S. They have also begun expanding into Europe, starting with Spain.

🧬 The Reverse Stock Split Mechanics 📉

The core announcement is the reverse stock split, which is a corporate mechanism used to adjust the stock price. A reverse split reduces the total number of outstanding shares but simultaneously increases the price per share, making the stock look more valuable.

The mechanics are straightforward but impactful:

• The Ratio: It is a 1-for-10 split.
• What it means: Every 10 shares of common stock will be automatically combined and converted into 1 share of common stock.
• Shares Reduction: The split will reduce the number of outstanding shares from approximately 5.8 million shares down to approximately 583 thousand shares.
• The Impact: The process also applies to any common stock issuable from outstanding stock options and warrants. Any fractional entitlements will be rounded up to the next whole number.
• Tax Note: The split will not affect the company's authorized number or par value of capital stock.

📅 When This Happens and How to Trade 🗓️

The timing of this corporate action is critical for investors, as it dictates when the shares will change hands.

• Effective Date: The reverse stock split is scheduled to become effective at 12:01 a.m. Eastern Time on April 20, 2026.
• Trading: La Rosa’s common stock will continue to trade under the symbol “LRHC” on Nasdaq, but it will start trading on a "split-adjusted basis" when the market opens that day.
• New Identification: The new CUSIP number for the common stock after the split will be 50172T400.
• Filing Details: The company filed the necessary amendment with the Nevada Secretary of State on April 16, 2026.

👉 Why this timing matters: The company states that by executing this action before being issued a deficiency notice from Nasdaq, they are taking a proactive step to demonstrate their commitment to maintaining their listing.

🏛️ Filing Details and Approvals 📝

The filings confirm the legal steps taken to make this stock change official.

• Nevada Filing: The Certificate of Amendment was filed with the Nevada Secretary of State on April 16, 2026, with filing number 20265674326.
• Approval: The amendment was adopted by the company’s Board of Directors and stockholders.
• Officer: Joseph La Rosa, Chief Executive Officer, signed the document, confirming the action.

💡 Why The Reverse Split Is Happening (Strategy) 🔮

The company did not simply announce the split; they provided the strategic reason behind the early action.

The primary motivation is to maintain market integrity and ensure continued trading listing:

• Compliance Focus: The company is taking this proactive corporate action "to ensure compliance before any notice is issued" regarding Nasdaq's minimum bid price requirement.
• Market Perception: By increasing the price per share and reducing the share count, the company aims to address concerns about the stock price being too low, thereby demonstrating a commitment to its market listing.

📧 Contact & Next Steps 📞

If investors or partners need more information regarding this corporate action, the company provides specific contacts for Investor Relations.

• Investor Relations Contact: Crescendo Communications, LLC
• David Waldman / Natalya Rudman
• Phone: (212) 671-1020
• Email: [email protected]

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🧠 The Analogy

Think of your stock like a giant, melted chocolate bar. If the bar is spread too thin across too many tiny little pieces (low share price), the whole thing might look fragile. By performing a reverse stock split, the company is essentially taking all those tiny pieces and expertly re-molding them into fewer, larger, more substantial chunks. This doesn't change the total amount of chocolate (the company's value), but it makes the product look much more robust and valuable to the buyer.

🧩 Final Takeaway

The 1-for-10 reverse stock split is a strategic, proactive effort by La Rosa to artificially boost the stock price and stabilize its market listing on Nasdaq. While this action doesn't change the underlying business value, it is designed to signal confidence and comply with market trading requirements.