Reliance Global Group, Inc. (EZRA) announced Monday it has signed a definitive agreement to acquire controlling interest in Enquantum Ltd., a startup developing encryption technology meant to survive the quantum computing revolution that's currently keeping cybersecurity professionals up at night.

Here's the setup: quantum computers, when they eventually work at scale, will be able to crack today's encryption methods like you're opening a screen door with a sledgehammer. Enquantum is building the security solutions meant to replace those vulnerable systems before that becomes a very expensive problem.

The deal follows an earlier non-binding term sheet, with due diligence nearly wrapped up. Reliance expects to close within 30 days.

The company notes that quantum computing advances are forcing enterprises and government agencies to move post-quantum security from "something we should think about eventually" to "something we need to deploy right now."

Deal Structure and Milestones

Reliance will acquire its 51% stake for $2.125 million total, paid out in installments tied to operational and commercialization milestones. The agreement values Enquantum at a $2.041 million pre-money valuation, implying a per-share price of $9.8018.

The ownership ramp happens in stages. Reliance starts with 8% fully diluted ownership at the initial closing, achieved through converting a $166,000 secured bridge note and a cash issuance. Additional monthly share issuances will boost ownership to 48%, with a final step bringing it to the 51% majority position.

As milestones are hit, Reliance expects to gain board-level control rights, subject to the definitive agreement and Enquantum's governance documents.

The Technology and Strategy

Enquantum is developing hardware-accelerated, NIST-aligned post-quantum cryptographic solutions designed for high-throughput network environments. The company has a 2025 patent covering FPGA-based encrypted communications using quantum-resistant techniques.

For Reliance, the transaction marks the first operating platform in its wholly owned EZRA International Group technology portfolio and supports its recently launched Scale51 strategy, which focuses on majority-owned investments in technology companies.

Ezra Beyman, chairman and CEO of Reliance, said, "We believe Enquantum's technology is designed to address a real and growing requirement for post-quantum security in performance-sensitive environments. With this definitive agreement and our ability to acquire a 51% majority controlling interest, we believe we are positioned to shift our focus from assessment to execution. With the recent launch of Scale51, this transaction will represent a tangible first step in executing our strategy and demonstrates how we intend to translate that framework into action."

Moshe Fishman, senior vice president of strategic ventures, stated that post-quantum cryptography is "no longer a purely academic concern," highlighting Enquantum's focus on integrating with existing networks while maintaining required performance.

EZRA Price Action: Reliance Global Group shares were up 8.02% at $0.17 during premarket trading on Monday.