Reliance Global Group, Inc. (NASDAQ:RELI), an insurance brokerage firm, has enlisted the services of Morrow Sodali LLC to assist with proxy solicitation for its forthcoming annual stockholders meeting. The company, headquartered in Lakewood, New Jersey, announced on Monday that it would pay the proxy solicitation firm a fee of $11,500, plus potential additional payments for each stockholder contacted.
The annual meeting, scheduled to be held virtually on December 16, 2024, will address proposals detailed in the definitive proxy statement filed with the Securities and Exchange Commission on October 31, 2024. Stockholders as of the record date, October 17, 2024, are invited to vote on these matters.
Reliance Global Group has confirmed that no changes have been made to the proposals since the proxy materials were mailed to stockholders. The company will also reimburse Morrow Sodali LLC for reasonable out-of-pocket expenses incurred during the solicitation process.
Furthermore, directors and officers of the company may also contribute to the solicitation efforts through various means without receiving additional compensation.
The engagement of Morrow Sodali LLC comes after the initial proxy materials were distributed, indicating the company's intent to ensure adequate stockholder participation and the success of the proposals at the annual meeting. The firm's role will include reaching out to both record holders and non-objecting beneficial owners (NOBOs) to obtain their votes.
Reliance Global Group will cover the costs of banks, brokers, and other entities for forwarding solicitation materials and collecting voting instructions from beneficial owners of the company's common stock.
This corporate update is based on information contained in a recent SEC filing by Reliance Global Group, Inc.
In other recent news, Reliance Global Group reported a successful third quarter, with a 5% increase in revenues to $3.4 million and a significant 16% reduction in operating expenses to $3.9 million.
This resulted in a 64% improvement in the loss from operations, now at approximately $837,000, and a 54% reduction compared to the previous year. In addition, the company achieved a positive adjusted EBITDA of about $42,000, marking a 121% increase year-over-year.
Reliance Global Group also announced plans for strategic expansion, including the acquisition of Spetner Associates, which is expected to nearly double the company's consolidated revenues. The acquisition will provide substantial cross-selling opportunities and potentially offer customer savings.
The company also launched an AI-powered solution on the RELI Exchange platform, aimed at enhancing agent efficiency and client satisfaction. Furthermore, with a positive adjusted EBITDA and strong cash flow from the Spetner acquisition, Reliance Global Group is considering deploying excess cash for stock buybacks or further investments.
InvestingPro Insights
As Reliance Global Group prepares for its annual stockholders meeting, recent data from InvestingPro paints a challenging picture for the company. With a market capitalization of just $2.79 million, RELI is currently trading near its 52-week low, reflecting significant investor concerns. The company's revenue for the last twelve months as of Q3 2024 stands at $14.08 million, with a modest growth of 4.71% over the same period.
InvestingPro Tips highlight that RELI is "quickly burning through cash" and "suffers from weak gross profit margins." These factors may be contributing to the company's decision to engage Morrow Sodali LLC for proxy solicitation, as they seek to ensure strong stockholder participation in the upcoming meeting.
The stock's performance has been particularly concerning, with InvestingPro data showing a one-year price total return of -90.51% as of the latest available date. This significant decline underscores the importance of the upcoming annual meeting and the proposals to be voted on by stockholders.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for RELI, providing deeper insights into the company's financial health and market position.
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