Reliance Global Group, Inc. - RELI STOCK NEWS

Reliance Global Group (Nasdaq: RELI; RELIW) reported a significant achievement in revenue, posting an 82% increase to $4.2 million for Q1 2022, up from $2.3 million the previous year. This growth stems from strategic acquisitions, including the recent purchase of Barra & Associates, and organic expansion. However, operating expenses rose to $6.6 million, primarily due to increased administrative costs from these acquisitions. Notably, net income surged to $9.3 million, aided by a $15.5 million gain on the warrant liability.

Reliance Global Group has appointed Grant Barra as Senior Vice President of Operations to enhance the agency partner network and launch a new InsurTech platform aimed at growth acceleration. Barra, with over 18 years of experience, previously founded Barra & Associates, offering various insurance products. His leadership is anticipated to utilize advanced technologies, improving sales efficiency and expanding distribution networks. CEO Ezra Beyman highlighted Barra's track record in driving profitability and revenue growth as pivotal for upcoming strategic initiatives.

Reliance Global Group, Inc. (NASDAQ: RELI; RELIW) announced the acquisition of Barra & Associates for approximately $7.5 million, combining cash and debt. This acquisition expands their network by adding over 60 agents and aligns with their strategy for nationwide growth. Barra & Associates generated over $700K in EBITDA in 2021, enhancing Reliance's profitability and reinforcing its strong balance sheet. CEO Ezra Beyman emphasized the strategic importance of the acquisition for synergy and growth. Further details will be filed with the SEC.

Reliance Global Group, Inc. (NASDAQ: RELI, RELIW) reported financial results for the year ended December 31, 2021, highlighting a 33% revenue increase to $9.7 million, primarily due to operational growth and recent acquisitions. The company faced a net loss of $21.1 million, largely attributed to a non-cash fair value change in its warrant commitment derivative. The acquisition of Medigap Health Insurance is expected to bolster revenue by over 70%. Reliance maintains a solid cash position of over $4.6 million and is positioned for growth through further acquisitions.

Reliance Global Group has successfully completed its acquisition of Medigap Health Insurance Company for $20.1 million, significantly strengthening its position in the Medicare supplement market. This acquisition is set to boost Reliance's revenues by approximately 70%, expanding its operational footprint to 47 states. Medigap, with an annual revenue of around $7 million, is noted for its rapid growth in the sector. CEO Ezra Beyman emphasized the potential for operating synergies and cross-selling opportunities as key drivers for future profitability.

Reliance Global Group, Inc. (NASDAQ: RELI; RELIW) announced a private placement offering expected to close on or around December 27, 2021, raising $20 million. The offering includes 9,076 shares of Series B Convertible Preferred Stock, 2,670,892 shares of common stock, and warrants to purchase up to 9,779,952 shares. Proceeds will mainly fund the acquisition of Medigap and enhance marketing for 5MinuteInsure.com. The preferred stock is convertible to common shares at $4.09 each, while the warrants feature the same exercise price, expiring in five years.

Reliance Global Group (Nasdaq: RELI; RELIW) announced its plan to acquire Medigap Health Insurance Company for approximately $19.6 million. This transaction is expected to close in the first quarter of 2022, subject to customary conditions. Medigap, an insurance brokerage based in Florida, specializes in Medicare supplement insurance and generated about $7 million in revenue in the last twelve months. The acquisition aims to enhance Reliance's capabilities in the Medicare market, potentially increasing revenue by over 70%, and is anticipated to be highly accretive.

Reliance Global Group, Inc. (NASDAQ: RELI, RELIW) announced that CEO Ezra Beyman will participate in the Benzinga All Access event on December 16, 2021, at 10:20 a.m. ET. The event features a live interview moderated by Spencer Israel, Executive Producer of Benzinga TV. Viewers can watch the event live here, with an archived recording available on the company's investor relations website.

Reliance Global Group, Inc. (NASDAQ: RELI; RELIW) has successfully expanded its insurance platform, 5MinuteInsure.com, to include 20 states across the U.S., reaching a population of over 100 million. CEO Ezra Beyman expressed satisfaction with the rapid rollout and highlighted ongoing discussions for significant acquisitions to enhance product offerings. This platform utilizes AI to streamline insurance purchases, providing quotes in under 2 minutes and binding coverage in 5 minutes.