Reliance Global Group Inc (RELI)

[shanak10]

Bull, I respect your views, although many times we may not end up agreeing. But I really don't get why you have a problem with the paragraph that you quote.
The original PR stated clearly, as you highlighted, that due diligence is"well underway".
Doesn't that imply that in the coming weeks and months things could surface that might derail the purchase?
So if it is now announced that indeed, after "extensive due diligence", the deal was taken off the table, what is wrong with that? Should they have ignored whatever eventually surfaced, just to make good on the PR? That's obviously ridiculous, and I'm sure you agree.

Of course, the issue is why nothing was said about this for so long. Here we agree. There should have been some kind of communication with shareholders. We shouldn't have had to draw conclusions from the shadows, only to be confirmed months later by the 10Q.So we can at least agree on that.

Ben, nothing was said about it for so long because after "extensive due diligence" with the insurance company the deal fell through, very recently, during this quarter. That is why we are only seeing it now in the filings. That deal would have made a negative impact on shareholders as it would have caused a massive dilution.

Read below from the Q report.

Consistent with our disciplined approach, we decided not to proceed with the LOI announced on September 9, 2020 following extensive due diligence, including further evaluation of the growth prospects, earnings potential and proposed purchase price. We have also accomplished organically many of our original goals of this acquisition, including the addition of new carriers and licensing of 5minuteinsure.com in numerous states across the U.S. through Reliance Insurtech, LLC and our Fortman Insurance Agency subsidiary.