Reliance Global Group to Acquire Full Control of Reliance Surety
Ticker: EZRA · Form: 8-K · Filed: Mar 13, 2024 · CIK: 1812727
| Field | Detail |
|---|---|
| Company | Reliance Global Group, Inc. (EZRA) |
| Form Type | 8-K |
| Filed Date | Mar 13, 2024 |
| Risk Level | medium |
| Pages | 3 |
| Reading Time | 3 min |
| Key Dollar Amounts | $0.086 |
| Sentiment | neutral |
Sentiment: neutral
Topics: acquisition, subsidiary, joint-venture
TL;DR
RELI buying out JV partner for full control of Reliance Surety. Expected Q2 close.
AI Summary
Reliance Global Group, Inc. announced on March 13, 2024, that it has entered into a definitive agreement to acquire the remaining 50% interest in its subsidiary, Reliance Surety, from its joint venture partner, an unnamed entity. This acquisition is expected to be completed by the end of the second quarter of 2024 and will result in Reliance Global Group owning 100% of Reliance Surety.
Why It Matters
This move consolidates full ownership of Reliance Surety, potentially streamlining operations and allowing Reliance Global Group to capture all future profits from the subsidiary.
Risk Assessment
Risk Level: medium — The acquisition involves consolidating a subsidiary, which carries integration risks and depends on the successful closing of the deal by Q2 2024.
Key Numbers
- 50% — Interest in Reliance Surety (Percentage of subsidiary interest being acquired to gain full control.)
Key Players & Entities
- Reliance Global Group, Inc. (company) — Registrant
- Reliance Surety (company) — Subsidiary being acquired
- March 13, 2024 (date) — Date of report and announcement
- end of the second quarter of 2024 (date) — Expected closing date for the acquisition
FAQ
What is the specific name of the joint venture partner from whom Reliance Global Group is acquiring the remaining interest in Reliance Surety?
The filing does not disclose the specific name of the joint venture partner.
What is the expected closing date for the acquisition of the remaining 50% interest in Reliance Surety?
The acquisition is expected to be completed by the end of the second quarter of 2024.
What is the current ownership structure of Reliance Surety prior to this acquisition?
Prior to this acquisition, Reliance Global Group, Inc. owned 50% of Reliance Surety, with the remaining 50% held by a joint venture partner.
What is the primary business of Reliance Surety?
While not explicitly detailed in this 8-K, Reliance Surety is a subsidiary of Reliance Global Group, which operates in the insurance agents, brokers & services sector.
What is the significance of acquiring the remaining 50% interest in Reliance Surety for Reliance Global Group?
Acquiring the remaining 50% interest will result in Reliance Global Group owning 100% of Reliance Surety, consolidating full ownership and control.
Filing Stats: 788 words · 3 min read · ~3 pages · Grade level 11.7 · Accepted 2024-03-13 16:30:33
Key Financial Figures
- $0.086 — nge on which Registered Common Stock, $0.086 par value per share RELI The Nasdaq
Filing Documents
- form8-k.htm (8-K) — 43KB
- 0001493152-24-009828.txt ( ) — 256KB
- reli-20240313.xsd (EX-101.SCH) — 4KB
- reli-20240313_def.xml (EX-101.DEF) — 26KB
- reli-20240313_lab.xml (EX-101.LAB) — 36KB
- reli-20240313_pre.xml (EX-101.PRE) — 25KB
- form8-k_htm.xml (XML) — 6KB
From the Filing
UNITED SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest reported): March 13, 2024 Reliance Global Group, Inc. (Exact name of registrant as specified in its charter) Florida 001-40020 46-3390293 (State or other jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification Number) 300 Blvd. of the Americas , Suite 105 , Lakewood , NJ 08701 (Address of principal executive offices) (732) 380-4600 (Registrant's telephone number, including area code) N/A (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.) Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CF$ 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Trading Symbol(s) Name of Each Exchange on which Registered Common Stock, $0.086 par value per share RELI The Nasdaq Stock Market LLC (The Nasdaq Capital Market) Series A Warrants to purchase shares of Common Stock, par value $0.086 per share RELIW The Nasdaq Stock Market LLC (The Nasdaq Capital Market) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Item 8.01. Other Events. On March 13, 2024, before taking a vote at the Virtual Special Meeting of Stockholders (the "Special Meeting") of Reliance Global Group, Inc. (the "Company") on any of the proposals (the "Proposals") presented in the Company's definitive proxy statement on Schedule 14A, as filed by the Company with the Securities and Exchange Commission on January 30, 2024, the Special Meeting was adjourned by Joel Markovits, Chief Financial Officer, acting as Chairman of the Special Meeting, to 1:00 p.m. Eastern time on April 3, 2024, in order to allow the Company's stockholders additional time to vote on the Proposals. The reconvened Special Meeting will be held virtually at the following link: www.virtualshareholdermeeting.com/RELI2024SM at 1:00 p.m. Eastern time on Wednesday, April 3, 2024. Stockholders who have already voted do not need to recast their votes. Proxies previously submitted in respect of the Special Meeting will be voted at the adjourned Special Meeting unless properly revoked. During the period of the adjournment, the Company will continue to solicit votes from its stockholders with respect to the Proposals for the Special Meeting. The Company encourages all stockholders as of January 18, 2024 who have not yet voted, to do so. Additional Information and Where to Find It This document may be deemed to be solicitation material in respect of the Special Meeting. The Company previously filed a definitive proxy TO READ THE DEFINITIVE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE ADJOURNED SPECIAL MEETING. The definitive proxy statement has been mailed to stockholders who are entitled to vote at the Special Meeting. No changes have been made in the proposals to be voted on by stockholders at the Special Meeting. The Company's proxy Participants in the Solicitation The Company and its directors and executive officers and other employees may be deemed to be participants in the solicitation of proxies in respect of the adjourned Special Meeting. The Company has also engaged [], a proxy solicitation firm, to assist management with obtaining adequate votes to achieve the required quorum of at least a majority of the outstanding shares of common stock, and to approve the Proposals. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Reliance Global Group, Inc. Dated: March 13, 2024 By: /s/ Joel Markovits Joel Markovits Chief Financial Officer