Ethos Media Network Inc (OTCMKTS: EOMN) has seen an explosive move up in recent months from a start point of $0.0021 to recent highs of $0.126.
EOMN is the latest reverse merger play to light up the OTCBB and attract a fast growing shareholder base who sees big things happening here. The new CEO is Ezra Beyma, a serial entrepreneur and real estate executive whose website is ezrabeyman.net.
Ethos Media Network Inc (OTCMKTS: EOMN) recently submitted Articles of Amendment with the Secretary of State of Florida, changing EOMN’s corporate name to RELIANCE GLOBAL GROUP, INC.; the filing of that Amendment is pending.
On September 21, 2018, Jack Namer, formerly the sole officer and director of Ethos Media Network, Inc. (EOMN), sold his common and preferred shares of EOMN to Reliance Capital Group, LLC a New York-based limited liability company. Amy Nalewaik, also a principal shareholder of EOMN’s common stock, sold her shares in the transaction. Mr. Namer also resigned as the sole officer and director.
The new CEO of EOMN is Ezra Beyman, and the new directors of EOMN are Mr. Beyman and Alex Blumenfrucht, who was appointed CFO. New management elected to terminate EOMN’s status as a SEC-reporting entity, because they intend to cause EOMN to acquire a business or businesses within the next 30-60 days, but which currently do not have SEC-compliant audited financial statements, and which, in their judgment, might not become SEC-compliant audits within the time required by SEC regulations. New management’s focus will be on acquiring companies in the insurance agency and real estate sectors, and in many cases are controlled by companies affiliated with Reliance.
Accordingly, new management’s business plan is, first, to acquire the target business or businesses while EOMN is a non-reporting issuer; then, when the SEC-compliant audits of the business or businesses have been completed, they intend EOMN to become a SEC-reporting issuer again.
On October 25 EOMN announced it has acquired 100% of Employee Benefits Solutions and U.S. Benefits Alliance two Michigan-based insurance agencies specializing in the sale of health insurance products, in the wholesale and retail industry. Agencies, as opposed to insurance carriers, bear no insurance risk. Both insurance agencies were acquired from a related party.
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The consideration for the acquisition was the issuance of 16,400,000 restricted EOMN shares, bringing the total number of issued and outstanding EOMN common shares to 263,393,149. Immediately after the acquisition of EBS and US Alliance, EOMN’s subsidiary Eye on South Florida, Inc. was sold back to EOMN’s former principals for $1.
On a combined basis, EBS and US Alliance’s revenues from commissions on insurance premiums in 2017 were $914,000(unaudited). As previously announced, new management as of September 21, 2018 terminated EOMN’s registration as a reporting issuer with the SEC, because their intention is to acquire companies which might not have SEC-compliant audited financial statements. Then, when the SEC-compliant audits of the business or businesses have been completed, they intend EOMN to become a SEC-reporting issuer again.
Ezra Beyman, EOMN’s CEO, stated, ”We are delighted with EOMN’s first acquisitions in the insurance agency business, and we intend to continue to acquire companies in this sector and in real estate. We have significant experience in both sectors, and, at the appropriate time, we intend to become a SEC-reporting company again.”
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Currently trading at a $14.8 million market valuation EOMN had little assets or revenues but was debt free before the merger. Ezra Beyman has some significant assets listed on his website but its unclear what he brings to the new Company. He is clearly a mover and shaker and has already acquired two Michigan-based insurance agencies that did $914,000 in revenues in 2017 on a combined basis. We will be updating on EOMN when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with EOMN.
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Disclosure: we hold no position in EOMN either long or short and we have not been compensated for this article.