DivestmentAug 3, 2026, 08:33 AM
Reliance Global Group to Sell Altruis Subsidiary for $11M Cash
AI Summary
Reliance Global Group, Inc. announced a non-binding letter of intent to sell its Altruis Benefit Consulting subsidiary for $11 million in cash. This non-dilutive transaction is expected to generate approximately $7.6 million in incremental cash after fully repaying the company's $4.4 million term debt, eliminating about $1 million in annual interest expense. The proceeds will be used to fund the continued development of its proprietary AI platform and RELI Exchange InsurTech operations, aligning with its portfolio strategy to monetize mature assets and reinvest in growth opportunities.
Key Highlights
- Entered non-binding LOI to sell Altruis Benefit Consulting subsidiary for $11M cash.
- $9.35M to be paid at closing, with $1.65M held in interest-bearing escrow.
- Expected to generate approximately $7.6M incremental cash after debt repayment.
- Will repay $4.4M term loan, eliminating approximately $1M annual interest expense.
- Transaction is non-dilutive, with no new shares issued.
- Proceeds will fund continued investment in AI platform and RELI Exchange InsurTech.
- Targeted closing within the next 60 days, subject to conditions.
Price Impact
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