Reliance Global Group, Inc. 8-K

What Happened
Reliance Global Group, Inc. announced (Form 8-K filed Jan 21, 2026) that on January 15, 2026 it advanced $166,000 to Enquantum Ltd. under a secured convertible promissory note. The Note bears interest at 1% per annum and includes default interest equal to the greater of 10% per annum or the maximum allowed under Florida usury law. The advance was made in connection with a non‑binding term sheet for a potential strategic transaction between the parties.

Key Details

• Principal advanced: $166,000 (Note dated Jan 15, 2026).
• Interest: 1% per annum; default interest = greater of 10% p.a. or Florida usury maximum.
• Alternative repayment: If definitive transaction agreements are executed within 30 days, the Note is satisfied by setoff against milestone payments—50% credited to the first milestone payment and 50% to the second.
• If no definitive agreements within 30 days (unless extended), indebtedness becomes payable in cash within 60 days after the exclusivity period ends.
• Security: Enquantum granted Reliance a first‑ranking floating charge over substantially all present and future assets, including intellectual property, plus negative pledge and disposal restrictions.
• The Note contains customary reps, covenants, default provisions, and reimbursement for the Company’s enforcement attorneys’ fees; the full Note is filed as Exhibit 10.1.

Why It Matters
For investors, this filing documents a small, secured financing tied to a possible strategic transaction. The $166k advance is protected by a broad security interest and could instead be offset against future milestone payments if the contemplated deal proceeds. However, the transaction remains contingent on negotiating and signing definitive agreements; there is no assurance a deal will be completed. The filing signals ongoing strategic discussions and provides the company with a secured, short‑term financing mechanism while those discussions proceed.