New Tech Investment Arm Launches with AI Bet

Reliance Global Group (RELI), an insurance technology company, made waves Wednesday by announcing its acquisition of a majority stake in Scentech, an Israeli company working on something that sounds like science fiction: diagnosing diseases by analyzing human breath.

The acquisition marks the first investment for Ezra International Group, Reliance's freshly minted technology investments arm. It's a notable pivot for the company, expanding beyond its insurance roots into broader health-tech territory.

Scentech is developing AI tools designed to identify disease-associated molecular signatures in breath samples. The technology is still in development, though, and none of the company's product candidates have received commercial approval yet.

"Through the acquisition of a majority equity interest of Scentech, we believe we are expanding our reach into the broader health-tech ecosystem, if successfully developed, validated and approved for commercialization," said Ezra Beyman, CEO of Reliance.

Market Reaction

RELI Price Action: Investors weren't exactly thrilled with the news. Shares dropped 4.93% to 58 cents at the time of publication, according to market data.