Reliance Global Group Inc. (OTCMKTS: RELI) is one of those rare reverse merger plays at least this year that has not given back much of its gains. RELI started at well below a penny in September and hit highs of $0.339 in November.
In December RELI announced its plans to continue executing on its focused strategy of pursuing acquisitions in the real estate and insurance agency sectors to fully leverage management’s expertise in these industries. As part of this strategy, RELI is currently in negotiations with several affiliated and non-affiliated parties and expects to complete a number of substantial, material real estate transactions throughout the course of 2019. The Company will provide further details as they are available.
Reliance Global Group, Inc. (OTC PINK: RELI) now is moving forward with its goal to operate as a holding company for several companies invested in the real estate, insurance brokerage, and potentially other sectors. RELI’s focus will be to grow the Company by pursuing an aggressive growth strategy of acquisition opportunities, including both real estate and insurance agencies. Insurance agencies, as opposed to insurance carriers, bear no insurance risk. The Company is controlled by Reliance Global Holdings, LLC, a New York-based limited liability company, which is the owner and operator of numerous companies with core interests invested in real estate and insurance brokerage.
The CEO of Reliance Global is Ezra Beyman, and the new directors of Reliance Global are Mr. Beyman and Alex Blumenfrucht, who was appointed CFO. New management elected to terminate the company’s status as a SEC-reporting entity, because they intend to cause it 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.
For the Inside Scoop on Reliance Global Subscribe to Microcapdaily.com Right Now by entering your Email in the box below
In December RELI announced it has completed the previously announced acquisition of an unaffiliated niche insurance agency, Commercial Solutions of Insurance Agency, LLC (“Commercial Solutions”), for a total purchase price of $1.2 million, consisting of cash and the issuance of 761,905 restricted RELI shares to Commercial Solutions’ sole shareholder. Headquartered in Hackettstown, NJ, Commercial Solutions serves customers in several Northeastern states including NY, NJ, PA and MD. Commercial Solutions specializes in providing commercial P&C Insurance to the trucking, towing and short-haul services industries. As an independent agent, Commercial Solutions has access to a variety of insurance programs that provide the most reasonable insurance rates to meet individual businesses’ needs. Currently, Commercial Solutions supports approximately $6.7 million in annual premiums. For the fiscal year ended December 31, 2017, Commercial Solutions had revenues of $510,000 (unaudited). RELI funded the transaction through a combination of cash and debt financing. The cash required for the acquisition was provided, on behalf of RELI, by Reliance Global Holdings, LLC, which is controlled by Ezra Beyman, RELI’s Chairman and CEO.
In a recent update RELI stated:
In October 2018, the Company acquired 100% of Employee Benefits Solutions (”EBS”) and U.S. Benefits Alliance (USBA”), two Michigan-based insurance agencies specializing in the sale of health insurance products, in the wholesale and retail industry. Based on recent new customer enrollments that have occurred under RELI’s management and will take effect on January 1, 2019, RELI expects these subsidiaries to achieve substantial, year-over-year revenue growth during 2019.
In November 2018, RELI entered into an exclusive six-month agreement with The Referral Depot (TRD), a one-of-a-kind software-based referral program made for the insurance industry, placing TRD under the Company’s full management and control, for the benefit of RELI’s recently-acquired subsidiaries EBS and USBA. RELI also announced in November that it is forming a Real Estate Investment Trust (”REIT”), for the purpose of acquiring, developing and owning primarily multi-family apartment complexes throughout the United States. The REIT to be formed is tentatively entitled “Edmonton Realty REIT USA,” and is intended to facilitate RELI’s rapid entry into the REIT sector.
We have a Monster Pick Coming. Subscribe Right Now!
Currently trading at a $52 million market valuation Reliance Global RELI is the new name and ticker for Ethos Media. New CEO Ezra Beyman is clearly a mover and shaker and has already made a number of acquisitions including two Michigan-based insurance agencies that did $914,000 in revenues in 2017 on a combined basis as well as an unaffiliated niche insurance agency, Commercial Solutions of Insurance Agency, LLC. We will be updating on Reliance Global when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with Reliance Global.
Sign Up now for our 100% FREE Penny Stock Newsletter
Disclosure: we hold no position in Reliance Global either long or short and we have not been compensated for this article.