Reliance Global Sells Montana Insurance Unit for $2.6M Cash
EZRA sits 54% above its 52-week low of $1.75.
Summary
Reliance Global Group agreed to sell its Southwestern Montana Insurance Center subsidiary to Scali, LLC for $2.625 million in cash, with an uncapped earnout tied to EBITDA above $300,000. The deal is expected to close by September 11, 2026.
Key Events · M&A and Partnerships · EZRA
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Montana Insurance Unit Sold for $2.6M
Reliance Global Group agreed to sell 100% of Southwestern Montana Insurance Center (SMI) to Scali, LLC for $2,625,000 in cash, structured as a combination equity and asset purchase.
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Cash Injection Equals ~58% of Market Cap
The $2.625 million purchase price is substantial relative to Reliance's $4.5 million market cap, providing meaningful liquidity to a company with heavy cash burn and Nasdaq delisting risk.
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Uncapped Earnout Tied to EBITDA
Additional consideration equals 8.75x any EBITDA above $300,000 for the 12 months ending August 31, 2027, with no cap. If EBITDA does not exceed $300,000, no earnout is payable.
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Closing Contingent on Payment by Sept 11
The closing is deemed effective September 1, 2026 for accounting purposes, but only occurs upon Scali's full cash payment, which must be made by September 11, 2026. Failure to pay allows Reliance to terminate.
Analysis · EZRA · Finance
A $2.625 million cash sale of its Southwestern Montana Insurance Center subsidiary to Scali, LLC injects liquidity into a company burning cash and facing Nasdaq delisting risk. The purchase price equals roughly 58% of Reliance's entire market cap, making this a transformative divestiture. An uncapped earnout tied to EBITDA above $300,000 could add further upside, but the base cash payment alone is the key near-term catalyst. Closing is contingent on Scali paying by September 11, 2026, so the deal is not yet final.
How filings like this one have moved
In the 30 days to Sep 10, 2026, 35.8% of the 1864 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, EZRA was trading at $2.69 on NASDAQ in the Finance sector, with a market capitalization of approximately $4.5M. The 52-week trading range was $1.75 to $78.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.