Reliance Global Group Announces Reverse Stock Split

Reliance Global Group (Nasdaq: EZRA) approved a 1-for-40 reverse stock split of its common stock to help regain compliance with Nasdaq’s $1.00 minimum bid price rule.

Rhea-AI Summary

Reliance Global Group (Nasdaq: EZRA) approved a 1-for-40 reverse stock split of its common stock to help regain compliance with Nasdaq’s $1.00 minimum bid price rule. The split becomes effective May 15, 2026, with split-adjusted trading starting May 18, 2026, under a new CUSIP.

The reverse split will reduce outstanding shares from about 22.23 million to about 555,764, without changing total shareholder ownership percentages. Proportional adjustments will apply to stock options, warrants, and other awards. VStock Transfer, the transfer agent, will coordinate share exchanges for certificated holders.

Positive

• 1-for-40 reverse split aimed at Nasdaq bid price compliance
• Outstanding shares reduced from ~22.23M to ~555,764
• Shareholder ownership percentages remain unchanged post-split

Negative

• Reverse stock split indicates prior Nasdaq minimum bid price noncompliance risk
• Share count consolidation may reduce stock liquidity for EZRA

Argus May 14 session

-26.45% close to close Open Argus

Details

News Market Reaction – EZRA

On May 14, the day this news came out, EZRA closed 26.45% below the previous close.

Data tracked by StockTitan Argus for the May 14 session.

Key Figures

Reverse split ratio: 1-for-40 Minimum bid requirement: $1.00 Effective time: 5:00 p.m. ET May 15, 2026 +5 more

Reverse split ratio

1-for-40

Approved reverse stock split of common stock

Minimum bid requirement

$1.00

Nasdaq Capital Market minimum bid price for continued listing

Effective time

5:00 p.m. ET May 15, 2026

Reverse split effective with Florida Department of State

Split-adjusted trading date

May 18, 2026

Common stock begins trading on a reverse split-adjusted basis

Par value per share

$0.086

Par value of common stock unchanged by reverse split

Pre-split shares

22,230,563 shares

Approximate common shares outstanding before reverse split

Post-split shares

555,764 shares

Approximate common shares outstanding after reverse split

Conversion ratio

40 shares to 1

Every 40 shares automatically convert into one share

Historical Context

5 past events · Latest: May 07

5 events

1. May 07

   Q1 2026 earnings

   24h Move

   -3.0%

   Reported Q1 2026 results with ~$1.4M net loss and ~$3.2M cash.

2. May 06

   Earnings call setup

   24h Move

   +3.4%

   Scheduled Q1 2026 results and business update conference call.

3. May 05

   LifeSci platform launch

   24h Move

   -4.6%

   Launched LifeSci Global platform with initial Innervate investment focus.

4. May 04

   Innervate investment

   24h Move

   +5.0%

   Completed ~<$2.0M> strategic investment in Innervate Radiopharmaceuticals.

5. Apr 28

   Enquantum stake increase

   24h Move

   -6.2%

   Raised Enquantum ownership to ~29% with pathway toward 51% control.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

reverse stock split, minimum bid price requirement, cusip number, par value, +3 more

7 terms

reverse stock split financial

"approved a 1-for-40 reverse stock split (the “Reverse Stock Split”) of the Company’s common stock"

A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.

minimum bid price requirement regulatory

"to regain compliance with the $1.00 minimum bid price requirement for continued listing"

A minimum bid price requirement is a rule that a stock must trade above a set price for a specified period to stay listed on an exchange. It matters to investors because falling below that threshold can trigger warnings or removal from the exchange, which can cut liquidity, reduce visibility, and often lead to sharper declines in share value—think of it like a venue’s minimum dress code that, if not met, can bar a performer from the stage.

cusip number technical

"under the symbol “EZRA” and under a new CUSIP number, 75946W 504"

A CUSIP number is a nine-character code that uniquely identifies a specific U.S. or Canadian stock, bond, or other security, similar to a barcode or a social-security number for a financial instrument. It matters to investors because it removes confusion between similar securities, ensures trades and settlements are applied to the correct issue, and helps locate official documents and transaction records quickly.

par value financial

"without any change to the par value of $0.086 per share"

Par value is the fixed amount printed on a bond or stock that represents its original value when issued. It’s like the face value of a coin or bill—what the issuer promises to pay back or the starting price of a stock—though it often doesn’t change with market prices. It matters because it helps determine certain financial details, like how much the company will pay back at maturity.

stock options financial

"shares of Common Stock issuable upon exercise of the Company’s outstanding stock options and warrants"

Stock options are agreements that give a person the right to buy or sell a company's stock at a specific price within a certain time frame. They are often used as a reward or incentive, similar to a coupon that can be used later if the stock price rises, allowing the holder to make a profit.

warrants financial

"shares of Common Stock issuable upon exercise of the Company’s outstanding stock options and warrants"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

View in glossary

book-entry form technical

"Stockholders who hold their shares of Common Stock in book-entry form or in brokerage accounts"

A book-entry form is an electronic record showing ownership of securities instead of a paper certificate; think of it like a bank account ledger that notes who owns shares. It matters to investors because it makes buying, selling and transferring securities faster, safer and cheaper by reducing paperwork, loss or forgery risk, and enabling easier settlement through brokers or a central depository.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LAKEWOOD, NJ, May 14, 2026 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: EZRA) (“Reliance”, “we” or the “Company”) today announced that the Company’s Board of Directors approved a 1-for-40 reverse stock split (the “Reverse Stock Split”) of the Company’s common stock (the “Common Stock”) in order to regain compliance with the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market (Rule 5550(a)(2)). The Company was not required to obtain shareholder approval to effectuate the Reverse Stock Split. The Company filed articles of amendment to the Company’s articles of restatement to the articles of incorporation with the Florida Department of State, Division of Corporations which is expected to become effective as of 5:00 p.m. Eastern Time on May 15, 2026.  The Common Stock will begin trading on The Nasdaq Capital Market on a reverse split-adjusted basis at the start of trading on May 18, 2026, under the symbol “EZRA” and under a new CUSIP number, 75946W 504.

Ezra Beyman, CEO of Reliance, remarked, “Reliance is proud to be a Nasdaq listed company and we know the actions being taken are important to our investors as they will help ensure continued compliance with Nasdaq listing rules. We are highly optimistic about our future, remain steadfast in our commitment to our business strategy, and believe that the prospects for our Company are exceptionally promising.”

Upon implementation of the Reverse Stock Split, every 40 shares of the Company’s issued and outstanding Common Stock will automatically convert into one share of Common Stock without any change to the par value of $0.086 per share and the amount of Common Stock outstanding will be reduced from approximately 22,230,563 shares to approximately 555,764 shares. Following the Reverse Stock Split, the ownership percentage of each shareholder will remain unchanged. Proportional adjustments will be made to the number of shares of Common Stock issuable upon exercise of the Company’s outstanding stock options and warrants, and other incentive awards, as well as the applicable exercise price.

Information to Stockholders

VStock Transfer, LLC, the Company transfer agent, will send instructions to stockholders of record who hold stock certificates regarding the exchange of certificates for Common Stock. Stockholders who hold their shares of Common Stock in book-entry form or in brokerage accounts or “street name” are not required to take any action to effect the exchange of their shares of Common Stock following the Reverse Stock Split. VStock Transfer, LLC may be reached for questions at (212) 828-8436.

About Reliance Global Group, Inc.

Reliance Global Group, Inc. (Nasdaq: EZRA) is an InsurTech pioneer, leveraging artificial intelligence (AI) and cloud-based technologies to transform and improve efficiencies in the insurance agency/brokerage industry. The Company’s business-to-business InsurTech platform, RELI Exchange, provides independent insurance agencies with an entire suite of business development tools, enabling them to effectively compete with large-scale national insurance agencies while reducing back-office cost and burden. The Company’s business-to-consumer platform, 5minuteinsure.com, utilizes AI and data mining to provide competitive online insurance quotes within minutes to everyday consumers seeking to purchase auto, home, and life insurance. In addition, the Company operates its own portfolio of select retail insurance agencies offering a wide variety of insurance products.

In addition to its insurance and InsurTech operations, Reliance operates EZRA International Group, its strategic growth platform focused on identifying, acquiring, and building majority or controlling stakes in high-growth technology companies. EZRA International Group is designed to complement Reliance’s core insurance business by expanding market reach and supporting long-term stockholder value creation through disciplined capital allocation and active ownership.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by the use of words such as “may,” “should,” “could,” “will,” “expect,” “anticipate,” “intend,” “believe,” “estimate,” “seek,” “potential,” “target,” or similar expressions.

Forward-looking statements in this press release include statements regarding the timing and effectiveness of the Reverse Stock Split and the market effective date; the anticipated post-split trading price and the ability of the Reverse Stock Split to result in a sustained increase in the Company’s stock price to a level at or above $1.00 per share; the belief that the Reverse Stock Split will result in compliance with the minimum bid price requirement of Nasdaq Listing Rule 5550(a)(2) prior to the June 10, 2026 compliance deadline; expectations regarding post-split shares outstanding and the effect of fractional share rounding; and the ability to maintain compliance with all applicable Nasdaq continued listing standards.

These forward-looking statements are based on current expectations and assumptions subject to risks and uncertainties, many of which are beyond the Company’s control, including: the risk that the Reverse Stock Split does not result in a sustained increase in the Company’s stock price or that the stock price subsequently falls below $1.00, which could result in further Nasdaq non-compliance or delisting proceedings; the risk that the Reverse Stock Split causes the Company to fall out of compliance with another Nasdaq listing requirement, including minimum publicly held shares; restrictions under amended Nasdaq rules that limit the ability to effect additional reverse stock splits within a one-year period to regain minimum bid price compliance; volatility in the Company’s common stock; and general business, economic, and market conditions.

Actual results may differ materially from those expressed or implied by these forward-looking statements. Additional information regarding factors that may cause actual results to differ materially is included under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and in subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances after the date of this press release.

Contact:
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: EZRA@crescendo-ir.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What reverse stock split did Reliance Global Group (NASDAQ: EZRA) announce in May 2026?

Reliance Global Group approved a 1-for-40 reverse stock split of its common stock. According to the company, every 40 existing shares will automatically convert into one share, with no change to the stock’s par value of $0.086 per share.

When does the EZRA 1-for-40 reverse stock split become effective and start trading?

The reverse stock split is expected to become effective May 15, 2026, at 5:00 p.m. Eastern. According to Reliance Global Group, split-adjusted trading on Nasdaq will begin May 18, 2026, under symbol EZRA and new CUSIP 75946W 504.

How will the Reliance Global Group (EZRA) reverse split affect outstanding shares?

The reverse stock split will reduce outstanding common shares from about 22,230,563 to about 555,764. According to the company, each shareholder’s ownership percentage will remain unchanged, with only the number of shares held decreasing proportionally.

Why is Reliance Global Group (EZRA) doing a 1-for-40 reverse stock split?

Reliance Global Group is enacting the reverse split to help regain compliance with Nasdaq’s $1.00 minimum bid price requirement. According to the company, maintaining its Nasdaq Capital Market listing is considered important for investors and corporate visibility.

How will the EZRA reverse stock split impact options and warrants for shareholders?

All outstanding stock options, warrants, and other incentive awards will be adjusted proportionally following the reverse split. According to Reliance Global Group, both the number of underlying shares and applicable exercise prices will change to reflect the 1-for-40 ratio.

Do Reliance Global Group (EZRA) shareholders need to do anything for the reverse split?

Shareholders holding certificates will receive instructions from VStock Transfer regarding exchanging certificates. According to the company, investors holding EZRA in book-entry, brokerage accounts, or street name do not need to take any action for the reverse stock split.