La Rosa Holdings Corp. Announces 80-for-1 Reverse Stock Split to Regain Compliance with Nasdaq鈥檚 Minimum Bid Price Requirement and Reduce the Public Float
La Rosa Holdings (NASDAQ: LRHC), a real estate and PropTech company, has announced an 80-for-1 reverse stock split effective July 7, 2025. The split will reduce outstanding shares from 58.3 million to approximately 729,000.
The company's stock will continue trading under the symbol "LRHC" with a new CUSIP number 50172T202. The move aims to regain compliance with Nasdaq's minimum bid price requirement and reduce public float to attract institutional investors. Management expressed confidence in their agent-driven revenue strategy and targets achieving profitability and positive cash flow by the end of 2025.
La Rosa Holdings (NASDAQ: LRHC), un'azienda immobiliare e PropTech, ha annunciato un reverse stock split di 80 azioni in 1 con effetto dal 7 luglio 2025. La divisione ridurr脿 le azioni in circolazione da 58,3 milioni a circa 729.000.
Le azioni della societ脿 continueranno a essere negoziate con il simbolo "LRHC" e un nuovo numero CUSIP 50172T202. L'operazione ha l'obiettivo di ristabilire la conformit脿 al requisito minimo di prezzo per azione di Nasdaq e ridurre il flottante pubblico per attrarre investitori istituzionali. Il management ha espresso fiducia nella strategia di ricavi basata sugli agenti e punta a raggiungere la redditivit脿 e un flusso di cassa positivo entro la fine del 2025.
La Rosa Holdings (NASDAQ: LRHC), una empresa inmobiliaria y de PropTech, ha anunciado una consolidaci贸n inversa de acciones 80 a 1 que entrar谩 en vigor el 7 de julio de 2025. La operaci贸n reducir谩 las acciones en circulaci贸n de 58,3 millones a aproximadamente 729,000.
Las acciones de la compa帽铆a seguir谩n cotizando bajo el s铆mbolo "LRHC" con un nuevo n煤mero CUSIP 50172T202. Esta medida busca recuperar el cumplimiento del requisito m铆nimo de precio por acci贸n de Nasdaq y reducir el float p煤blico para atraer inversores institucionales. La direcci贸n expres贸 confianza en su estrategia de ingresos basada en agentes y apunta a lograr rentabilidad y flujo de caja positivo para finales de 2025.
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La Rosa Holdings (NASDAQ : LRHC), une entreprise immobili猫re et PropTech, a annonc茅 un regroupement d'actions invers茅 de 80 pour 1 effectif au 7 juillet 2025. Cette op茅ration r茅duira le nombre d'actions en circulation de 58,3 millions 脿 environ 729 000.
Les actions de la soci茅t茅 continueront de se n茅gocier sous le symbole "LRHC" avec un nouveau num茅ro CUSIP 50172T202. Cette d茅marche vise 脿 retrouver la conformit茅 avec l'exigence minimale de prix par action du Nasdaq et 脿 r茅duire le flottant public pour attirer les investisseurs institutionnels. La direction a exprim茅 sa confiance dans sa strat茅gie de revenus ax茅e sur les agents et vise 脿 atteindre la rentabilit茅 ainsi qu'un flux de tr茅sorerie positif d'ici la fin 2025.
La Rosa Holdings (NASDAQ: LRHC), ein Immobilien- und PropTech-Unternehmen, hat eine 80-zu-1 Reverse-Aktienzusammenlegung angek眉ndigt, die am 7. Juli 2025 wirksam wird. Die Anzahl der ausstehenden Aktien wird von 58,3 Millionen auf etwa 729.000 reduziert.
Die Aktien des Unternehmens werden weiterhin unter dem Symbol "LRHC" mit einer neuen CUSIP-Nummer 50172T202 gehandelt. Dieser Schritt soll die Einhaltung der Mindestkursanforderung der Nasdaq wiederherstellen und den Streubesitz verringern, um institutionelle Investoren anzuziehen. Das Management zeigte sich zuversichtlich in seine umsatzorientierte Agentenstrategie und strebt an, bis Ende 2025 Profitabilit盲t und positiven Cashflow zu erreichen.
- Strategic move to maintain Nasdaq listing compliance
- Potential to attract institutional and long-term investors through reduced float
- Company projects reaching profitability and positive cash flow by end of 2025
- Operational efficiencies achieved through recent system integrations
- Significant share consolidation indicates previous stock price weakness
- Current lack of profitability and negative cash flow
- Shift from growth-focused strategy suggests previous approach wasn't sustainable
Insights
LRHC's 80:1 reverse split aims to maintain Nasdaq listing while reducing float, signaling financial challenges despite management's optimistic projections.
La Rosa's announcement of an 80-for-1 reverse split reveals significant underlying challenges. This extreme ratio鈥攆ar exceeding typical 1:10 or 1:20 splits鈥攕trongly indicates the stock has experienced substantial price deterioration. The primary motivation is clearly to regain compliance with Nasdaq's
The reduction from 58.3 million shares to approximately 729,000 represents a dramatic restructuring of La Rosa's capital structure. While management frames this as potentially attracting institutional investors by reducing public float, reverse splits typically signal financial distress rather than strength. The market frequently reacts negatively to such extreme measures, often leading to post-split price declines as investor confidence erodes.
Most concerning is the shift in strategic language from "growth-only" to "sustainable financial performance" with goals of positive cash flow and profitability by year-end. This strongly suggests current operations are unprofitable with negative cash flow鈥攁 troubling position requiring immediate attention. The reference to "agent-driven revenue strategy" combined with "recurring nature of our revenue" indicates dependence on real estate agent fees, which are vulnerable to housing market fluctuations.
While management expresses confidence about reaching profitability by end-2025, investors should recognize this extreme capital restructuring as a significant warning sign about La Rosa's current financial health and market position.
Celebration, FL, July 02, 2025 (GLOBE NEWSWIRE) -- La Rosa Holdings Corp. (NASDAQ: LRHC) (鈥淟a Rosa鈥� or the 鈥淐ompany鈥�), a real estate and PropTech company, today announced that it will effect a 80-for-1 reverse split (鈥渞everse split鈥�) of its shares of common stock that will become effective on July 7, 2025 at 12:01 a.m. (Eastern Time).听
La Rosa鈥檚 common stock will continue to trade on Nasdaq under the symbol 鈥淟RHC鈥� and will begin trading on a split-adjusted basis when the market opens on July 7, 2025. The new CUSIP number for the common stock following the reverse split will be 50172T202. At the effective time of the reverse split, every 80 shares of the Company's issued and outstanding common stock will be automatically reclassified and combined into 1 share of common stock. This听will reduce the number of outstanding shares of common stock from approximately 58.3 million shares to approximately 729,000 shares, without giving effect to rounding. No fractional shares will be issued; instead, any fractional entitlements will be rounded up to the next highest whole number at the participant level.
Joe La Rosa, CEO of La Rosa, commented, 鈥淲e believe this reverse split will not only help us regain compliance with Nasdaq鈥檚 minimum bid price requirement, but also reduce our public float鈥攑otentially attracting a broader range of institutional and long-term investors. We remain confident in the business outlook and continue to execute on our agent-driven revenue strategy. At the same time, we are placing increased focus on achieving profitability and generating positive cash flow. Our goal is to shift from a growth-only mindset to sustainable financial performance. With the recurring nature of our revenue and the operational efficiencies gained through recent system integrations, we believe La Rosa is well-positioned to reach positive cash flow and profitability by the end of 2025.鈥�
About La Rosa Holdings Corp.
La Rosa Holdings Corp. (Nasdaq: LRHC) is transforming the real estate industry by providing agents with flexible compensation options, including a revenue-sharing model or a fee-based structure with
The Company offers both residential and commercial real estate brokerage services, as well as technology-driven products and support for its agents and franchise partners. Its business model includes internal services for agents and external offerings for the public, spanning real estate brokerage, franchising, education and coaching, and property management.
La Rosa operates 26 corporate-owned brokerage offices across Florida, California, Texas, Georgia, North Carolina, and Puerto Rico. La Rosa also recently started its expansion into Europe, beginning with engagement of the area developer in Spain. Additionally, the Company has six franchised offices and branches and three affiliated brokerage locations in the U.S. and Puerto Rico. The Company also operates a full-service escrow settlement and title company in Florida.
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Forward-Looking Statements
This press release contains forward-looking statements regarding the Company鈥檚 current expectations that are subject to various risks and uncertainties. Such statements include statements regarding the Company鈥檚 ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words 鈥渋ntends,鈥� 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥減lans,鈥� 鈥渆xpects,鈥� 鈥渁nticipates,鈥� 鈥減rojects,鈥� 鈥減redicts,鈥� 鈥渆stimates,鈥� 鈥渁ims,鈥� 鈥渂elieves,鈥� 鈥渉opes,鈥� 鈥減otential鈥� or similar words.听These听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鈥檚 services and the Company鈥檚 customers' economic condition, the impact of competitive services and pricing, general economic conditions, the successful integration of the Company鈥檚 past and future acquired brokerages, the effect of the recent National Association of AG真人官方tors' 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鈥�). You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading 鈥淩isk Factors鈥� in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and other reports and documents that we file from time to time with the SEC. 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:
Investor Relations Contact:
Crescendo Communications, LLC
David Waldman/Natalya Rudman
Tel: (212) 671-1020
Email: 听
FAQ
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