Reliance Global Group Completes Strategic Sale of its EBS / USBA Business Unit

Rhea-AI Summary

Reliance Global Group (Nasdaq: RELI) completed the sale of two non-core subsidiaries, Employee Benefits Solutions and U.S. Benefits Alliance, closing a strategic divestiture of remaining non-core components in Cadillac, Michigan.

The company will allocate 50% of net proceeds to debt reduction and the remainder to reinvestment in strategic initiatives, specifically its core platforms RELI Exchange and 5minuteinsure.com. Management reports long-term debt was reduced by approximately $6 million (more than 50%) during 2025.

Positive

• Completed sale of non-core EBS business units in Cadillac, Michigan
• Allocated 50% of net proceeds to debt reduction
• Reduced long-term debt by ~$6 million (more than 50%) in 2025
• Planned reinvestment into RELI Exchange and 5minuteinsure.com to support scaling

Negative

• None.

Key Figures

Proceeds to debt reduction 50% of net proceeds Allocation of EBS/USBA sale proceeds to reduce debt

Long-term debt reduction $6 million Long-term debt reduced during 2025, more than 50% cut

Debt reduction share more than 50% Decline in long-term debt during 2025 as cited by CFO

Market Reality Check

$0.5600 Last Close

Volume Volume 286,388 vs 20-day average 272,998 (relative volume 1.05x). normal

Technical Shares at 0.5582, trading below 200-day MA of 1.09 and near 52-week low of 0.5516.

Peers on Argus 1 Up

RELI fell 9.72% while peers were mixed: HUIZ -3.6%, ZBAO +2.41%, XHG -8.4%, AIFU 0%, indicating a stock-specific move rather than a broad sector shift.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 11	Non-core asset sale LOI	Positive	-1.2%	Announced LOI to sell EBS/USBA and allocate proceeds to debt and growth.
Dec 08	Treasury ZEC increase	Positive	-2.5%	Deployed additional cash to grow Zcash position in digital asset treasury.
Nov 26	Further ZEC deployment	Positive	+0.9%	Increased ZEC holdings as part of focused Digital Asset Treasury strategy.
Nov 25	DAT consolidation	Positive	-9.8%	Consolidated Digital Asset Treasury fully into Zcash with strategic rationale.
Nov 19	Advisory board appointment	Positive	-3.4%	Appointed Blake Janover to lead Crypto Advisory Board for DAT initiatives.

Pattern Detected

Recent strategic and digital-asset announcements often saw negative next-day moves, suggesting frequent divergence between ostensibly positive news and short-term price reaction.

Recent Company History

Over the past months, Reliance Global Group highlighted several strategic shifts, including Digital Asset Treasury (DAT) consolidation into Zcash and repeated increases to its ZEC position, as well as appointing a Crypto Advisory Board chair on Nov 19, 2025. On Dec 11, 2025, it announced a letter of intent to sell the EBS/USBA unit with plans to use 50% of proceeds for debt reduction. Today’s completion of that sale and further debt paydown continues the balance-sheet rationalization theme seen across these updates.

Market Pulse Summary

The stock moved -5.9% in the session following this news. A negative reaction despite balance-sheet progress fits prior patterns where ostensibly constructive news, such as DAT strategy updates and non-core asset actions, often preceded declines. This sale completed the earlier EBS/USBA LOI, directing 50% of proceeds to debt and contributing to a $6 million long-term debt reduction in 2025. Nonetheless, pressures from Nasdaq minimum-bid compliance requirements and past equity financing activity could reinforce caution toward short-term upside after announcements.

Key Terms

net proceeds financial

"The Company will use 50% of the net proceeds to reduce debt"

The amount of money a company actually keeps from a sale or fundraising after paying all direct costs and fees, similar to take-home pay after taxes and deductions. Investors care because net proceeds determine how much cash is available for things that affect value—paying debt, funding projects, buying assets, or returning money to shareholders—so it influences future growth potential and financial health.

long-term debt financial

"we’ve been able to reduce our long-term debt by approximately $6 million"

Long-term debt is money a company has borrowed that it does not have to repay for more than one year, such as bank loans or bonds. It matters to investors because these obligations require future interest and principal payments that can reduce cash available for growth or dividends; like a household mortgage, manageable long-term debt can finance expansion, but too much increases the risk that the company will struggle to meet payments.

AI-generated analysis. Not financial advice.

Proceeds allocated to debt rationalization program and reinvestment - improvement in financial flexibility intended to accelerate new programs

LAKEWOOD, NJ, Dec. 29, 2025 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI) (the “Company”) today announced that it has finalized the sale of two of its subsidiaries, Employee Benefits Solutions, LLC and U.S and Benefits Alliance, LLC (together, “EBS”), two non-core agencies located in Cadillac, Michigan. The successful transaction is part of a comprehensive balance sheet rationalization program, intended to enhance the Company’s ability to execute on new initiatives.

Overall, the Company has been engaged in a strategy to focus efforts on areas that the Company believes will produce better outcomes. Since acquiring U.S. Benefits Alliance, LLC and Employee Benefits Solutions, LLC in 2019, Reliance has selectively integrated portions of the businesses that aligned with its long-term, technology-forward strategy into its core RELI Exchange platform. The transaction reflects the sale of only the remaining non-core components of those businesses, while the strategic elements previously integrated into Reliance’s core operations remain part of the Company’s ongoing growth initiatives. The Company will use 50% of the net proceeds to reduce debt and the balance will be reinvested in strategic business initiatives.

“Successfully completing this transaction is an important step in our overall strategy to focus capital and efforts toward the areas that the Company has identified to potentially produce the best return on investment,” stated Ezra Beyman, CEO of Reliance Global Group. “While EBS has been a reliable asset, the Company has identified opportunities in areas that it believes to potentially hold greater returns for shareholders. The result, which is a strengthening of our balance sheet, increases our investment capacity and ability to act on higher return opportunities that present themselves to the Company.”

Joel Markovits, the Company’s CFO added, “Combined with the debt reduction from this transaction, during 2025, we’ve been able to reduce our long-term debt by approximately $6 million, or more than 50%, and with the balance of the proceeds after debt reduction going toward reinvestment in our core platforms, RELI Exchange and 5minuteinsure.com, the Company anticipates greater scaling and an enhancement in our competitive position.”

About Reliance Global Group, Inc.

Reliance Global Group, Inc. (NASDAQ: RELI) 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 an entire suite of business development tools, enabling them to effectively compete with large-scale national insurance agencies, whilst 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 “brick and mortar” insurance agencies which are leaders and pioneers in their respective regions throughout the United States, offering a wide variety of insurance products. Further information about the Company can be found at https://www.relianceglobalgroup.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by terminology such as “may,” “should,” “could,” “would,” “will,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “continue,” “potential,” and similar expressions. Forward-looking statements in this press release include, without limitation, statements regarding: our strategy to streamline our portfolio and focus resources on our core, technology-forward platforms; the anticipated benefits of the sale of Employee Benefits Solutions, LLC and U.S. Benefits Alliance, LLC (together, “EBS”), including the impact on our business focus, financial position and capital structure; our expectations regarding the use of proceeds from the EBS transaction, including our plan to use a portion of the net proceeds to reduce debt and reinvest the remaining proceeds in strategic business initiatives, including continued investment in RELI Exchange and 5minuteinsure.com; the expected impact of the transaction and such reinvestment on our liquidity, financial flexibility, competitive position, and ability to pursue new initiatives; and our broader business, strategic and financial outlook.

These forward-looking statements are based on current expectations and assumptions that involve risks and uncertainties, including, among others, that we will be able to successfully execute our strategy to streamline our portfolio and focus on core, technology-forward platforms; that we will be able to realize the anticipated strategic, operational and financial benefits of the EBS divestiture; that we will be able to effectively allocate and deploy the proceeds from the EBS sale, including to reduce debt and fund business development initiatives; that our investments in RELI Exchange, 5minuteinsure.com and other initiatives will generate the anticipated returns; that market, economic, interest rate and regulatory conditions will remain sufficiently favorable; and that we will be able to continue to access capital on acceptable terms and execute our broader business and capital markets strategy. In addition, our assumptions include the amount and timing of the net proceeds from the transaction (including any post-closing adjustments, escrow/holdback arrangements, or indemnification obligations), and our ability to retain and use such proceeds as anticipated. There can be no assurance that these assumptions will prove accurate.

Actual results could differ materially from those anticipated due to a variety of risks and uncertainties, including, without limitation: our ability to realize the anticipated benefits of the EBS divestiture; the possibility of unanticipated costs, liabilities or disruptions associated with the transaction, including any impact on our remaining operations, employees, customers or business partners; the possibility that the net proceeds from the transaction are reduced or delayed as a result of transaction expenses, post-closing purchase price adjustments, escrow/holdback amounts, or indemnification claims; our ability to successfully reduce debt and improve our leverage and overall financial flexibility; our ability to grow RELI Exchange and 5minuteinsure.com, attract and retain agents and customers, and achieve expected levels of adoption and profitability; our ability to effectively deploy capital into business development or other strategic initiatives; our ability to maintain adequate liquidity and access to capital (including any issuance under our at-the-market equity offering program, if utilized); competitive pressures, including within InsurTech and insurance agency/brokerage; and general business, economic, market, interest rate and geopolitical conditions; as well as other risks described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, as amended, our Quarterly Reports on Form 10-Q, and in other filings with the Securities and Exchange Commission.

You are encouraged to carefully review our Annual Report on Form 10-K for the year ended December 31, 2024, as amended, as well as our other filings with the Securities and Exchange Commission, for a more complete discussion of these and other risks and uncertainties. Except as required by law, Reliance Global Group, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact:

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

FAQ

What did Reliance Global Group (RELI) sell on December 29, 2025?

Reliance sold two non-core subsidiaries: Employee Benefits Solutions and U.S. Benefits Alliance.

How will Reliance (RELI) use the proceeds from the EBS sale?

The company will use 50% of net proceeds to reduce debt and reinvest the balance in strategic initiatives.

How much debt reduction did Reliance (RELI) achieve in 2025?

Management says long-term debt was reduced by approximately $6 million, or more than 50%, during 2025.

Which Reliance platforms will receive reinvestment after the sale?

Reinvestment is targeted to the core platforms RELI Exchange and 5minuteinsure.com.

Does the EBS sale affect Reliance’s core operations (RELI Exchange)?

The transaction sold remaining non-core components; strategic elements previously integrated remain part of RELI Exchange and ongoing growth initiatives.

What is the strategic purpose of the sale for Reliance (RELI)?

The company says the sale is part of a balance sheet rationalization to strengthen the balance sheet and increase capacity to pursue higher-return opportunities.