Reliance Global Group Inks $11M All-Cash LOI to Sell Altruis Subsidiary, Aiming for a Debt-Free Balance Sheet
EZRA sits 32% above its 52-week low of $1.75 on light trading volume (0.3× avg).
Summary
Reliance Global Group signed a non-binding LOI to sell its Altruis subsidiary for $11 million in cash, a move that would retire all term debt and add ~$7.6 million in cash — a potential balance-sheet transformation for the micro-cap InsurTech.
Key Events · M&A and Partnerships · EZRA
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$11M All-Cash LOI for Altruis Sale
A non-binding letter of intent outlines the sale of substantially all operating assets of Altruis Benefit Consulting for $11 million in cash, with $9.35 million due at closing and $1.65 million held in escrow for 18 months.
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Debt Elimination and Cash Infusion
Proceeds would fully repay the $4.4 million Oak Street Funding term loan, releasing ~$1.0 million in restricted cash and generating ~$7.6 million of aggregate incremental cash — all without dilution.
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Interest Expense Savings
Repaying the term loan would eliminate approximately $1 million in annual interest expense, freeing cash for operations and growth initiatives.
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Target Closing by September 24, 2026
The parties are targeting a closing within 60 days, subject to definitive agreements, due diligence, financing, and other customary conditions — execution risk remains.
Analysis · EZRA · Finance
Reliance Global Group has entered a non-binding letter of intent to sell its Altruis Benefit Consulting subsidiary for $11 million in cash — a transformative move for a company with a market cap of just $2.4 million. The deal would retire all $4.4 million of term debt, wipe out roughly $1 million in annual interest expense, and generate approximately $7.6 million of incremental cash without issuing a single share. This potential balance-sheet reset directly confronts the going-concern and Nasdaq delisting risks flagged in recent filings. Yet the LOI remains non-binding, definitive agreements are unsigned, and closing hinges on financing, due diligence, and other conditions — execution risk is still high.
At the time of this filing, EZRA was trading at $2.31 on NASDAQ in the Finance sector, with a market capitalization of approximately $2.4M. The 52-week trading range was $1.75 to $78.00. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.