La Rosa Holdings Corp. (NASDAQ:LRHC) surged 45.5% on Friday after the company announced the initial closing of $11 million under its previously disclosed $250 million private placement convertible note facility.
The funding marks the first tranche of a broader capital structure that, when combined with La Rosa’s existing $1 billion equity purchase facility, gives the company access to as much as $1.25 billion in potential capital. Management said the proceeds will be used to build a strategic reserve to support the scaling of its AI infrastructure strategy, including the development of data center assets designed specifically for AI-driven workloads.
“Closing the initial tranche of our $250 million facility is a milestone that strengthens our investable assets and moves us from the evaluation phase to the execution phase,” said Joe La Rosa, CEO of La Rosa. “With $1.25 billion in total potential capital access, we are now positioned to act decisively on our pipeline of AI infrastructure that could drive long-term value for our shareholders.”
The company said it has been assessing partnership and joint venture opportunities with established technology and infrastructure players to advance the development of advanced AI computing facilities. La Rosa noted that the convertible notes issued under the facility, along with any shares issued upon conversion, have not been registered and are being offered under an exemption from registration pursuant to the Securities Act of 1933.
La Rosa Holdings said it continues to pursue its broader goal of reshaping the real estate sector by offering agents flexible compensation structures, including revenue-sharing arrangements or fee-based models that allow for 100% commission retention.