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

Reliance Global Group (NASDAQ:EZRA) has signed a non-binding letter of intent to sell its Altruis Benefit Consulting subsidiary for $11 million in cash, a transaction that could eliminate the company’s term debt while providing additional capital to invest in its AI platform and InsurTech initiatives.

Key Investor Takeaways

• Reliance Global Group signed an LOI to sell Altruis Benefit Consulting for $11 million in cash.
• If completed, the transaction would eliminate approximately $4.4 million of term debt and remove roughly $1 million in annual interest expense, according to the company.
• Reliance Global Group (NASDAQ:EZRA) expects the deal to generate approximately $7.6 million in incremental cash after debt repayment and escrow releases.
• The company would retain its AI platform, RELI Exchange network, and remaining insurance operations.
• The proposed transaction is non-binding, and completion remains subject to definitive agreements and customary closing conditions.

Why EZRA Stock Is in Focus

Reliance Global Group announced that it has entered into a non-binding letter of intent to sell the assets of its Altruis Benefit Consulting subsidiary for $11 million in cash.

Under the proposed terms, approximately $9.35 million would be paid at closing, while $1.65 million would be placed into an interest-bearing escrow account and released 18 months after closing, subject to the terms of the agreement.

The company said proceeds would be used to fully repay its approximately $4.4 million Oak Street Funding term loan, leaving it with no outstanding term debt. Reliance also plans to retain its proprietary AI platform, RELI Exchange InsurTech network, and its remaining insurance operations, while directing capital toward future technology investments.

The companies are targeting a closing within approximately 60 days, although the transaction remains subject to due diligence, definitive agreements, and customary closing conditions.

Why This Matters for Investors

If completed, the proposed sale would materially reshape Reliance Global Group’s balance sheet. Eliminating term debt and associated interest expense could improve financial flexibility while increasing available capital for strategic initiatives.

The transaction also reflects the company’s stated strategy of monetizing mature insurance assets to fund growth in higher-priority technology businesses, including its AI platform and RELI Exchange network. By retaining its remaining insurance operations, Reliance aims to continue generating recurring commission revenue while reallocating capital toward expansion opportunities.

However, investors should recognize that the announcement relates to a non-binding letter of intent rather than a completed transaction. The financial benefits outlined by management depend on successfully negotiating definitive agreements and closing the sale.

What to Watch Next

Investors will likely monitor:

• Execution of definitive purchase agreements.
• Progress toward the targeted closing within the next 60 days.
• Repayment of the company’s term debt if the transaction closes.
• Deployment of sale proceeds into the AI platform and RELI Exchange business.
• Updates on the performance and commercialization of Reliance’s AI-driven InsurTech strategy.

Reliance Global Group stock price