Reliance Global Group Announces Major Enhancement of Capital Structure Following Cashless Exercise of Warrants
LAKEWOOD, N.J, June 20, 2024 (GLOBE NEWSWIRE) -- 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.”
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.”
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