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Reliance Global Group, Inc. Announces Closing of $4.0 Million Private Placement
Lakewood, NJ , March 16, 2023 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (NASDAQ: RELI; RELIW) (“Reliance” or the “Company”), which combines artificial
About this update from Reliance Global Group, Inc.
[{"type":"text","content":"Lakewood, NJ , March 16, 2023 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (NASDAQ: RELI; RELIW) (“Reliance” or the “Company”), which combines artificial intelligence (AI) and cloud-based technologies with the personalized experience of a traditional insurance agency, today announced the closing of its previously announced private placement of common stock (or pre-funded warrants in lieu thereof) and warrants. Under the terms of the securities purchase agreement, the Company sold 155,038 shares of common stock and accompanying common warrants (the “Common Units”) and 897,594 pre-funded warrants and accompanying common warrants (the “Pre-Funded Units”) to purchase an aggregate of 2,105,264 shares of common stock underlying the common warrants. Each Common Unit was sold at a combined effective purchase price of $3.80 and the Pre-Funded Units were sold at the same price as the Common Units less the pre-funded warrant exercise price of $0.001. The common warrants will be exercisable six months from the date of issuance at an initial exercise price of $3.55 per share, subject to adjustments as set forth therein, and will expire five and a half years from the date of issuance. The Company intends to use the net proceeds from the private placement for general working capital and administrative purposes. EF Hutton, division of Benchmark Investments, LLC (“EF Hutton”) acted as exclusive placement agent for the offering. Anthony L.G., PLLC acted as legal counsel to Reliance and Lucosky Brookman LLP acted as legal counsel to EF Hutton. The Common Units and Pre-Funded Units described above have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from such registration requirements. The securities were offered only to accredited investors. Pursuant to a registration rights agreement with the investors, the Company has agreed to file one or more registration statements with the SEC covering the resale of the shares of common stock and the shares issuable upon exercise of the pre-funded warrants and warrants. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these s...