Reliance Global (NASDAQ: RELI) stock surged during intraday trading Thursday after the company achieved enhanced capital structure with institutional warrant redemption.
Reliance Global has announced the redemption of all outstanding Series B and Series G warrants by its final large institutional investor, simplifying the company’s capital structure. This move leaves Reliance with no significant institutional warrant holders or substantial warrant overhang.
Ezra Beyman, CEO of Reliance Global, expressed satisfaction with this development:
“We are pleased to report the elimination of all remaining Series B and Series G warrants, which converted into a reduced number of shares of Reliance common stock through cashless exercises. No additional shares or warrants were needed to facilitate these exercises. These transactions successfully remove the fairly significant warrant overhang, which we believe was negatively impacting our share price.”
The company now has only a nominal number of outstanding warrants, all of which are basic warrant instruments. Beyman highlighted the benefits of this streamlined capital structure:
“We now have a much more attractive and significantly improved capital structure, which we believe will help us unlock tremendous value for our shareholders as we execute key initiatives in 2024 and beyond.”
Additionally, Beyman highlighted the ongoing progress towards the planned acquisition of Spetner Associates. Reliance Global expects this acquisition to double its annualized revenues to an estimated $28 million and significantly boost cash flow.
Reliance Global (NASDAQ: RELI) Stock Reaction
On Thursday, RELI stock soared 54.41%, closing at $0.6039, marking a 163.14% increase for the week. The trading volume was 139,378,912 shares, significantly higher than the average daily volume of 10.08 million.
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