Reliance Global Group Inc (RELI)

[wingtrade]

There are a few things to consider.

We know that EB controls all the preferred shares as well as the vast majority of the 263.4 outstanding common shares, of which at least 116.4M are restricted. We know that as part of the Change of Control, the previous management sold all their shares to EB. We also know that all the prior convertible debt was paid off as part of the Change of Control, and so there can be no new issuance of shares due to legacy conversions or prior management hold over. An examination of the history of share issuance from the last 10Q prior to the Change of Control shows that roughly 45M common shares were bought for cash or issued to prior management, and 71M were issued for conversions under prior mgmt before the Change of Control. There has been some discussion on the board here regarding how many of those shares were transferred to EB in Non Open Market transaction during the Change of Control. Estimates of the float that I have seen discussed here have ranged from as low as 17M to 30M, but as far as I am aware we don't know for certain what the float is. Perhaps some other posters can chime in and provide this detail.

We have seen the company issue 100M restricted shares to Reliance GH in the days immediately after the change of Control was announced on 10/09. We do not know, at this time, whether those shares are part of an acquisition of assets underway or if they were issued for another reason.

On 10/25 we see that EB issued 16.4M restricted shares in consideration for the first acquisition of two Michigan-based insurance agencies. This confirms that EB intends to use restricted shares to structure at least some of the deals coming into EOMN.
https://www.otcmarkets.com/stock/EOMN/news/story?e&id=1205551

At this time we also learned through and amendment filed with the FLSOS on 10/18 that the common and the preferred Authorized Shares are in the process of increasing to 2B commmon and 750M preferred - however we have seen no further issuance of shares to date. Notably, the FLSOS amendment outlines that "Before the corporation shall issue any shares of Preferred Stock of any series, a certificate of designation... shall be prepared and signed by an officer of the corporation and filed in the manner prescribed by the FBCA." Therefore, it would appear that in fact the rights and series of Preferred Stock have not yet been finalized at this time. Amendment here:
http://search.sunbiz.org/Inquiry/CorporationSearch/ConvertTiffToPDF?storagePath=COR%5C2018%5C1102%5C15276474.Tif&documentNumber=P13000064240

Interestingly, on 10/30 a new pending acquisition was announced - with no further issuance of restricted shares. In fact, it was stated in the announcement that "EOMN's lender has already approved financing of the pending acquisition."
https://www.otcmarkets.com/stock/EOMN/news/story?e&id=1209148

Now, what does all of this tell us?

I think we will likely learn a lot more in the coming days, but my suspicion is that EOMN is on the verge of a series of very significant acquisitions.

GLTA EOMN