Replies to post #34681 on Reliance Global Group Inc (EZRA)

[BullMarket34]

Hard to say now that the deal has been modified. But no where near as much as initially. Par for the course.

[QaB2i]

Lmao - what if Nsure’s value at round 2 is $150,000,000? Why would $Reli buy more minority stake, clearly the acquisition of majority of Nsure is beyond reach for $Reli. So why buy minority?

Ok opposite way round Nsure value at round 2 $15,000,000. It would appear fundable for $Reli to put all its energy into reverse merging Nsure up to take control of Reli, Nsure has the requisite investment bankers on board already. This merger turns the company inside out. Now lead creation is the mission and writing business on the created auto health marine goldfish clients is big business.

Acquisition of small local insurance carriers in the hot footprint would follow as the bankers instinct is to create a vertical trapping revenues by moving the same client through many opportunistic policies.

By next year $RELI can try to acquire FMOs IMOs or agencies with Medicare Advantage/ Medigap DVH LTC and FE and use Nsure marketing to target seniors who bought Nsure home and car policies.

Also by next year Next year $Reli could compete with the rest of the rabble for under 65 health insurance.

IMO Nsure ends up going public through RELIs registrations.

[QaB2i]

Due diligence points to NSure firm D valuation, assuming $20,000,000 offered of Nsure equity, assuming 10-15% of the company is being sold, pre money val 180,000,000 - 200,000,000. If less of the company is being sold the higher its val goes.

[QaB2i]

Correction
On February 19, 2020, the Company entered into a securities purchase agreement with NSURE, Inc. (“NSURE”) whereas the Company may invest up to an aggregate of $20,000,000 in NSURE which will be funded with three tranches. In exchange, the Company will receive a total of 5,837,462 shares of NSURE’s Class A Common Stock, which represents 35% of the outstanding shares.

The first tranche of $1,000,000 was paid immediately upon execution of the agreement. As a result of the first tranche, the Company received 291,873 shares of NSURE’s Class A Common Stock, which represents 3% ownership of NSURE. The second tranche of $3,000,000 and third tranche of $16,000,000 are not due until a later date in 2020. NSURE’s equity securities do not have a readily determinable fair value because NSURE is a private company whose equity securities are not traded on an exchange registered with the U.S. Securities and Exchange Commission or in the Over-the-Counter Markets Accordingly, the Company accounts for its investment in NSURE at cost less impairment, if any, plus or minus any changes resulting from observable changes in orderly transactions until such time that a readily determinable fair value becomes available.

Once the Company determines that it can exercise significant influence over NSURE, The first tranche of $1,000,000 was paid immediately upon execution of the agreement. As a result of the first tranche, the Company received 291,873 shares of NSURE’s Class A Common Stock, which represents 3% ownership of NSURE. The second tranche of $3,000,000 and third tranche of $16,000,000 are not due until a later date in 2020. NSURE’s equity securities do not have a readily determinable fair value because NSURE is a private company whose equity securities are not traded on an exchange registered with the U.S. Securities and Exchange Commission or in the Over-the-Counter Markets Accordingly, the Company accounts for its investment in NSURE at cost less impairment, if any, plus or minus any changes resulting from observable changes in orderly transactions until such time that a readily determinable fair value becomes available.


So RELI has to chew through all $20m in this offering and come up with another $100 - $150m to get to majority of Nsure to enable RELI booking Nsure as an investment?

I was right! The guys at Nsure certainly know the ropes.