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Reliance Global Group Signs LOI to Sell Altruis Benefit Consulting for $11 Million in Cash

EZRA
  • Reliance Global Group (NASDAQ: EZRA) entered a non-binding letter of intent to sell its Altruis Benefit Consulting subsidiary for $11 million in cash.
  • Approximately $9.35 million of the purchase price is scheduled for payment at closing, with $1.65 million held in an interest-bearing escrow account released 18 months post-closing.
  • The transaction is expected to generate approximately $7.6 million of aggregate incremental cash after retiring $4.4 million in term debt to Oak Street Funding.
  • Repaying the term loan will eliminate approximately $1 million in annual interest expense & free up restricted cash collateral.
  • The deal is all-cash & non-dilutive, involving no issuance of new shares, seller notes, or earnouts.
  • Reliance will retain its proprietary AI platform, RELI Exchange InsurTech network, & other insurance operations while monetizing the mature Altruis asset.
  • The Company targets a closing within 60 days, subject to customary conditions & definitive agreement execution.
  • Proceeds will fund the continued development of the AI platform launched in July 2026 & the RELI Exchange network.
  • The LOI is non-binding, with no assurance that definitive agreements will be executed or that the transaction will be completed on the described terms.