Reliance Global Group Announces Major Enhancement of Capital Structure Following Cashless Exercise of Warrants
June 20 2024 - 8:30AM
Reliance Global Group, Inc. (Nasdaq: RELI; RELIW)
(“Reliance”, “we” or the “Company”) today announced that its final
large institutional investor has redeemed all of its outstanding
Series B and Series G warrants. The Company now effectively has a
much more simplified capital structure with no known significant
institutional warrant holders and no significant warrant overhang.
Ezra Beyman, CEO of Reliance, remarked, “We are pleased to
report the elimination of all remaining Series B and Series G
warrants, which converted into a reduced number of shares of
Reliance common stock as a result of cashless exercises. No
transaction incentives, such as additional shares or warrants, were
required to effectuate the exercises. These transactions
successfully complete the removal of the fairly significant warrant
overhang, which we believe was negatively impacting our share
price. As a result, the Company has only a nominal number of
warrants outstanding, and all are plain vanilla (basic) warrant
instruments. Importantly, we are confident that we now have a much
more attractive, simpler, and significantly improved capital
structure, which we believe will help us unlock tremendous value
for our shareholders as we execute key upcoming initiatives in 2024
and beyond.”
Mr. Beyman concluded, “Most notably, we are making continued
progress on our planned acquisition of Spetner Associates, which is
projected to double our annualized revenues to an estimated $28
million and contribute very meaningful cash flow.”
About Reliance Global Group, Inc.
Reliance Global Group, Inc. (NASDAQ: RELI; RELIW) is an
InsurTech pioneer, leveraging artificial intelligence (AI), and
cloud-based technologies, to transform and improve efficiencies in
the insurance agency/brokerage industry. The Company’s
business-to-business InsurTech platform, RELI Exchange, provides
independent insurance agencies an entire suite of business
development tools, enabling them to effectively compete with
large-scale national insurance agencies, whilst reducing
back-office cost and burden. The Company’s business-to-consumer
platform, 5minuteinsure.com, utilizes AI and data mining, to
provide competitive online insurance quotes within minutes to
everyday consumers seeking to purchase auto, home, and life
insurance. In addition, the Company operates its own
portfolio of select retail “brick and mortar” insurance agencies
which are leaders and pioneers in their respective regions
throughout the United States, offering a wide variety of insurance
products.
Further information about the Company can be found at
https://www.relianceglobalgroup.com
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. Statements other than
statements of historical facts included in this press release may
constitute forward-looking statements and are not guarantees of
future performance, condition or results and involve a number of
risks and uncertainties. In some cases, forward-looking statements
can be identified by terminology such as “may,” “should,”
“potential,” “continue,” “expects,” “anticipates,” “intends,”
“plans,” “believes,” “estimates,” and similar expressions and
include statements such as the Company having built a best-in-class
InsurTech platform, making RELI Exchange an even more compelling
value proposition and further accelerating growth of the platform,
rolling out several other services in the near future to RELI
Exchange agency partners, building RELI Exchange into the largest
agency partner network in the U.S., the Company moving in the right
direction and the Company’s highly scalable business model driving
significant shareholder value. Actual results may differ materially
from those in the forward-looking statements as a result of a
number of factors, including those described from time to time in
our filings with the Securities and Exchange Commission and
elsewhere and risk as and uncertainties related to: the Company’s
ability to generate the revenue anticipated and the ability to
build the RELI Exchange into the largest agency partner network in
the U.S., and the other factors described in the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2023.
The foregoing review of important factors that could cause actual
events to differ from expectations should not be construed as
exhaustive and should be read in conjunction with statements that
are included herein and elsewhere, including the risk factors
included in the Company’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2023, the Company’s Quarterly Reports on
Form 10-Q, the Company’s recent Current Reports on Form 8-K and
subsequent filings with the Securities and Exchange Commission. The
Company undertakes no duty to update any forward-looking statement
made herein. All forward-looking statements speak only as of the
date of this press release.
Contact:Crescendo Communications, LLCTel: +1
(212) 671-1020Email: RELI@crescendo-ir.com
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