After-hours trading showed shares of Reliance Global Group Inc. (Nasdaq: RELI) up 7.43% to $0.82 following an announcement of a share repurchase program. RELI closed the regular session at $0.76, trading 0.45 million shares.
How does RELI plan to repurchase shares?
As part of its share repurchase program, the Board of Directors of Reliance Global (RELI) announced on Friday that up to 3.0 million shares of its outstanding common stock may be purchased under the program. Upon the Company’s release of its quarterly earnings for the three months ended September 30, 2022 (the “Commencement Date”), it will become effective three business days later. According to RELI, the release will occur on or about November 14, 2022.
The repurchase of shares will be possible on the open market (based on market prices), privately negotiated transactions, block trades, or any combination thereof, following the Commencement Date and for a period of six months thereafter. There will be a number of factors that will influence the number of shares to be repurchased and the timing of repurchases.
As well as Reliance Global’s working capital requirements and general business conditions, these factors include price, trading volume, and general market conditions. As part of the repurchase program, RELI expects to use existing funds to fund repurchases under its existing repurchase program, which may be reevaluated by the Board of Directors from time to time.
As Reliance Global expects, the share repurchase program will result in a reduction in outstanding shares, increasing shareholder value. Although RELI is in a stronger position than at any time in its history, its management does not believe this reflects in the current share price. Within the past few weeks, RELI CEO Ezra Beyman purchased over $400,000 of stock on the open market to demonstrate his confidence.
Collaboration efforts by RELI
A referral partnership has been formed between Reliance Global (RELI) and NRS Funding, a service of National Retail Solutions (NRS) and an independent retailer cash advance service provider. As a result of the agreement, RELI Exchange affiliates can now provide merchant cash advances to clients.