Reliance Global Group Inc has met Nasdaq’s bid price requirement, a crucial step as the broker continues its growth, chairman and CEO Ezra Beyman (pictured above) announced.
The Reliance board of directors approved a 1-for-17 reverse stock split last month to comply with the Nasdaq Capital Market $1 minimum price requirement. As a result, every 17 shares of the company’s issued and outstanding common stock were converted into one share without changing the par value of $0.086 per share.
According to a report from AM Best, this action reduced the number of outstanding common stock shares to approximately 921,000 from about 15.7 million, according to a company statement. Despite the reverse stock split, the ownership percentage of each shareholder remained unchanged.
Beyman stated that the company remains focused on executing its strategic initiatives, including closing the pending acquisition of Spetner Associates and pursuing additional accretive acquisition opportunities.
Progress is also continuing on the OneFirm initiative, which aims to integrate nine owned and operated US agencies to function as a single unit, Beyman noted.
Moshe Fishman, director of insurtech and group operations, previously mentioned that the Spetner acquisition includes the BenManage voluntary benefit insurance business, which provides insurance to more than 75,000 employee lives.
Fishman highlighted the key points of the acquisition, including a strong management team, excellent revenue with a high EBITDA to revenue ratio, residual commission income, and synergy with Reliance's core businesses.
Reliance believes the acquisition could more than double its revenue to approximately $28 million.
Earlier in 2023, Reliance executed a reverse stock split to meet Nasdaq’s minimum bid price requirement.
Shares of Reliance were trading at $4.40 on the afternoon of July 17, up 10.55% from the previous close.
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