During the regular session on Monday, Reliance Global Group Inc. (RELI) stock saw a huge upsurge. Consequently, the stock entered a downtrend in the after-hours, suffering from corrections.
RELI gained a huge 17.70% in regular trading at a hefty volume of 25.62 million shares. After closing the session at $7.58, the stock succumbed to corrections in order to shed its gains. Hence, the stock went down to $7.00 in the after-hours, with a loss of 7.65% at 546.89K shares.
Currently, Reliance Global Group Inc. has a market capitalization of $70.56 million. Moreover, the company has 10.96 million shares outstanding in the market.
RELI stock Movement
During regular trading, RELI stock reached a high of $9.55 at 707% of its 65-day average volume of 3.63 million shares. While there was no news driving the stock up, it gained 17.70% on Monday. The huge gains in the stock called for corrections in the after-hours. Hence, the stock fell under corrections in the after-hours to shed its gains.
To look at the overall movement of the stock, RELI has been going strong near the end of 2021. While it gained just 26.79% last year, the past three months saw a huge gain of 188.21%. Moreover, RELI has added 292.75% last month and 42.75% in the past five days alone.
$20.0M Private Placement
On December 23, the company had announced a private placement of $20.0 million with institutional investors. The offering was expected to close around December 27, 2021, while there has been no official announcement of the closing as of yet.
According to the agreement, 9,079 Series B Convertible Preferred Stock shares, 2,670,892 common stock shares, and warrants for purchasing 9,779,952 common stock shares were sold. Moreover, the conversion price of the preferred stock is $4.09 per share, which are immediately convertible. Furthermore, the preferred stock is non-voting and will receive dividends (if and when paid to common stock). In addition, the warrants are also immediately exercisable with a $4.09 per share exercise price, with expiry after five years.
Further, the net proceeds from the placement are intended for funding the planned acquisition of Medigap, for marketing activities of 5MinuteInsure.com, and general corporate purposes.
RELI’s Q3 Highlights
In the third quarter of 2021, RELI’s revenues increased by 54% year over year to $2.6 million, against $1.7 million in Q3 of 2020.
Moreover, the company also saw an 88% decrease in consolidated EBITDA loss in the Q3 of 2021.
