NEW YORK, April 3, 2019 /PRNewswire/ -- Reliance Global Group, Inc. (OTC: RELI) ("RELI" or the "Company"), is pleased to announce that RELI's affiliated privately-owned company Reliance Global Holdings, LLC has completed the previously announced acquisition of an unaffiliated niche insurance agency, Southwestern Montana Insurance Agency, for a total purchase price of $2.338 million, consisting of cash and the issuance of restricted stock. Insurance agencies, as opposed to carriers, bear no insurance risk.
As RELI is in the process of completing its audited financial statements, in order to become a SEC- reporting issuer, this acquisition was purchased by Reliance Global Holdings, LLC, and will be transferred into RELI upon the successful completion of the audit.
Headquartered in Belgrade, Montana, Southwestern Montana serves customers throughout the entire State. Southwestern Montana specializes in providing employee benefits insurance to groups and individuals. As an independent agent, Southwestern Montana has access to a variety of insurance programs that provide the most reasonable insurance rates to meet individual businesses' needs. For the fiscal year ended December 31, 2018, Southwestern Montana had revenues of approximately $1,500,000 (unaudited). Reliance LLC, which is controlled by Ezra Beyman, RELI's Chairman and CEO, funded the transaction through a combination of cash, stock and debt financing.
This acquisition, at the start of Q2 2019, is the first of a series of acquisitions we intend to complete, as previously announced. Additionally, we have received correspondence from the bank regarding the requested loan assumptions on the 19 properties previously placed under LOI. We will be responding to the bank and will provide them with their requested documents and will provide updates as they become available.
Ezra Beyman, RELI's CEO, stated, ''We are delighted with RELI's continuing to make acquisitions in the insurance agency space, as well as our vision to grow our independent agencies, and we intend to continue to make acquisitions in the real estate sector as well."
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
SOURCE Reliance Global Group, Inc.