1. RELI sold two non-core subsidiaries to streamline operations. 2. 50% of proceeds will reduce debt, boosting balance sheet strength. 3. Investment will focus on core platforms: RELI Exchange and 5minuteinsure.com.
FAQ
Why Bullish?
The divestiture enhances RELI's balance sheet and strategic focus. Past reductions in debt have positively influenced stock prices.
How important is it?
The strategic divestiture and debt reduction are significant for RELI's future growth and financial stability.
Why Short Term?
Immediate debt reduction may result in improved liquidity and investment capacity. Positive short-term trends can attract investors quickly.
Reliance Global Group Completes Strategic Sale of EBS and USBA Business Units
Lakewood, NJ, December 29, 2025 – Reliance Global Group, Inc. (Nasdaq: RELI) has announced the successful completion of the sale of its subsidiaries, Employee Benefits Solutions, LLC and U.S. Benefits Alliance, LLC, collectively known as EBS. This strategic transaction represents a key component of the Company's comprehensive balance sheet rationalization program, aimed at enhancing its operational focus and capital allocation.
Transaction Overview
The sale involves two non-core agencies located in Cadillac, Michigan, which Reliance Global Group had acquired in 2019. According to the Company, this divestiture is part of its ongoing strategy to concentrate on sectors with superior growth potential. Key elements integrated into the RELI Exchange platform will remain part of the Company's forward-looking business plan.
Reliance intends to allocate 50% of the net proceeds from this sale towards debt reduction, with the remainder earmarked for reinvestment in strategic business initiatives.
Comments from Executives
Ezra Beyman, CEO of Reliance Global Group, emphasized the significance of the transaction, stating, “This transaction is a vital step in our overall strategy to prioritize investments that yield the best potential return on investment. While EBS has served us well, identifying opportunities with greater returns for our shareholders is essential." He added that this move will strengthen their balance sheet and enhance their capacity for investment in high-return opportunities.
Joel Markovits, CFO, noted that the sale is part of a broader effort to streamline operations, mentioning, “This transaction, along with our ongoing debt reduction efforts, has allowed us to decrease long-term debt by approximately $6 million, or over 50%. The remaining proceeds will be reinvested into our core platforms, including RELI Exchange and 5minuteinsure.com, positioning us for improved competitive advantage.”
About Reliance Global Group, Inc.
Reliance Global Group, Inc. (NASDAQ: RELI) is a pioneering force in the InsurTech space, utilizing artificial intelligence (AI) and cloud-based technologies to enhance efficiency within the insurance agency and brokerage industries. Its B2B platform, RELI Exchange, equips independent insurance agencies with essential business development tools, enabling them to compete effectively against larger national players.
The Company's consumer-focused platform, 5minuteinsure.com, leverages AI and data mining to deliver competitive insurance quotes swiftly to consumers seeking auto, home, and life insurance. Additionally, Reliance operates a portfolio of retail insurance agencies, recognized leaders in their regions.
For more information, visit Reliance Global Group's website.
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include expectations regarding the impact of EBS's sale on Reliance's business strategy and financial position.
Potential risks include the uncertainties surrounding the anticipated benefits from this transaction, potential alterations in market conditions, and the ability to achieve projected returns from investments in RELI Exchange and 5minuteinsure.com. You are encouraged to review the Company's filings with the Securities and Exchange Commission for more detailed discussions on these risks.