Reliance Global Group, Inc. (NASDAQ: RELI) experienced a remarkable trading day on Friday, with its stock price skyrocketing by 1440% during regular trading hours. Despite some cooling off, the momentum carried into the afterhours session, pushing the stock up an additional 44%. This dramatic surge saw the stock climb from $0.25 to $3.84, a significant rebound from the previous week’s sharp decline, which many see as a correction to the recent overselling.
The Reliance Reverse Stock Split Announcement
The catalyst for Friday’s extraordinary rise was the announcement of a 1-for-17 reverse stock split. The reverse stock split was approved by the company’s Board of Directors to regain compliance with the $1.00 minimum bid price requirement for continued Nasdaq listing. The split took effect on June 28, 2024, with trading on a split-adjusted basis beginning July 1, 2024.
CEO Ezra Beyman emphasized the importance of maintaining Nasdaq compliance and highlighted the upcoming acquisition of Spetner Associates, expected to double annual revenues to approximately $28 million.
Market Reactions and Future Prospects
Market reactions have been mixed, with some investors optimistic about the stock’s future, especially with the anticipated Spetner Associates acquisition.
CEO Ezra Beyman is expected to highlight this acquisition and the low float stock on Monday, potentially driving further interest. However, others recall the previous run being cut short by short attacks due to the impending reverse stock split. This time, with the split implemented, such disruptions are less likely.
Despite the volatility, Reliance’s stock remains a focal point for investors. The reverse stock split, unlike a merger, is straightforward and aims to stabilize the stock price. Trading for RELI will resume at 9:30 AM on Monday, with many watching closely for the next move in this eventful stock.
Conclusion
In conclusion, Reliance Global Group’s recent trading activity underscores its dynamic nature and potential for significant growth. The reverse stock split and strategic acquisitions signal a promising future, with investors keenly observing the developments.
