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Exclusive: Reliance Global Completes Enquantum Deal, Starts Path To 51% Ownership

Exclusive: Reliance Global Completes Enquantum Deal, Starts Path To 51% Ownership

FinvizFinviz2026/02/23 12:09
By:Finviz

Reliance Global Group Inc. (NASDAQ:EZRA) on Monday announced that it has completed its strategic acquisition of Enquantum Ltd., a post-quantum cryptography company developing quantum-resilient encryption technology.

The deal marks the first executed platform investment under the company's Scale51 operating model and sets a defined pathway toward majority control as Reliance builds Enquantum into a core platform within EZRA International Group.

The company announced the agreement on Feb. 9.

Deal Structure And Ownership Plan

Under the agreement, Reliance acquired an initial 8% fully diluted stake by converting a $166,000 secured bridge note and providing additional cash.

The milestone-based structure aims for 51% ownership for $2.125 million in installments, valuing Enquantum at a $2.041 million pre-money valuation and a $9.8018 per-share price.

The agreement establishes a milestone-based framework to increase ownership over time to a 51% fully diluted controlling interest, subject to specified operational and commercialization milestones and customary conditions.

Rising Quantum Security Risks

Rapid progress in quantum computing has raised concerns that encryption standards like RSA and elliptic curve cryptography could become vulnerable to quantum attacks.

Security agencies and industry experts warn of "harvest now, decrypt later" strategies, in which encrypted data is collected now for decryption once advanced quantum systems become available.

In response, standards bodies such as the U.S. National Institute of Standards and Technology (NIST) are developing post-quantum cryptographic standards in anticipation of a multi-year infrastructure upgrade cycle. Global cybersecurity spending is expected to surpass $300 billion annually by 2029.

Enquantum's Technology Platform

Enquantum is developing hardware-accelerated, NIST-aligned post-quantum cryptographic solutions for high-throughput environments. Its architecture supports terabit-scale operations without increasing latency for financial institutions, telecommunications carriers, cloud providers, data centers, and government networks.

In 2025, Enquantum was granted a patent covering FPGA-based encrypted communications utilizing quantum-resistant techniques.

"This transaction advances our strategy to acquire majority control of a company in an increasingly important sector as the industry transitions to post-quantum standards," said Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group.

"We structured a milestone-driven acquisition pathway to achieve majority ownership, and today we completed Phase I. We believe post-quantum encryption is essential for the long term; it represents a fundamental change in securing critical systems. We plan to develop Enquantum into a scaled operating business under our control."

Price Action: EZRA shares closed 3.08% lower at $0.18 on Friday.

Photo via Shutterstock

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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