Transaction Expected to Generate Approximately $7.6 Million of Aggregate Incremental Cash After Retiring 100% of the Company's Term Debt

All-Cash, Non-Dilutive Transaction Would Support Continued Investment in the Company's Proprietary AI Platform and RELI Exchange InsurTech Operations

LAKEWOOD, NJ, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (NASDAQ:EZRA) ("Reliance," "EZRA" or the "Company"), an InsurTech company leveraging artificial intelligence, cloud computing and advanced technologies to transform the insurance agency/brokerage industry, today announced that it has entered into a non-binding letter of intent (the "LOI") to sell the assets of its Altruis Benefit Consulting ("Altruis") subsidiary, a Michigan-based health insurance agency and benefits consulting business, for $11 million in cash. The transaction would transform the Company's balance sheet, retiring all of its term debt while adding a substantial amount of cash, without issuing a single share of stock. The LOI is non-binding, and there can be no assurance that definitive agreements will be executed or that the proposed transaction will be completed on the terms described, on the contemplated timeline, or at all.

Key Terms and Expected Impact

  • $11 million in cash for a single subsidiary. Reliance would retain its proprietary AI platform, RELI Exchange and its other insurance operations. Approximately $9.35 million would be paid at closing, with $1.65 million held in an interest-bearing escrow account, the remaining balance of which, plus accrued interest, would be released to the Company 18 months after closing.
  • Approximately $7.6 million of incremental cash. After fully repaying its Oak Street Funding term loan — the Company's only term debt of approximately $4.4 million. The transaction is expected to generate approximately $7.6 million of incremental cash in the aggregate: approximately $5 million of net proceeds at closing, before transaction expenses and any taxes; approximately $1.0 million of cash released from restriction as loan collateral; and $1.65 million upon release of the indemnification escrow 18 months after closing.
  • Zero dilution. The entire purchase price is payable in cash — not buyer stock, not a seller note, not an earnout.
  • Interest expense eliminated. Repaying the term loan would eliminate the entire principal and interest expense — approximately $1 million annually — making that cash available for operations and growth.
  • Targeted closing. The parties are targeting a closing within the next 60 days, subject to customary closing conditions.