reliance global group inc shares were down 13 to 421 after the company reported a private placement of preferred stock common stock and warrants for proceeds of 20 million the offering is expected to close on or around monday under the terms of the securities purchase agreement the reliance sold 9000 shares of its newly designated series b convertible preferred stock 27 million common shares and warrants to buy up to 98 million shares the company intends to use the proceeds from the private placement primarily to fund the recently announced planned acquisition of medigap as well as to support expanded marketing activities around 5minuteinsurecom and for general working capital and administrative purposes on wednesday reliance shares closed down 11 after the company said it was buying medigap health insurance co for 196 million