07:26 AM EDT, 09/09/2024 (MT Newswires) -- reAlpha Tech (AIRE) said in a regulatory filing Monday that it has agreed to acquire mortgage brokerage Be My Neighbor for a total purchase price of up to $6 million.

Debt Does Deals, which does business as Be My Neighbor, is licensed to operate in 26 states.

The purchase price includes $1.5 million in cash paid on the closing date and $1.5 million in restricted shares of reAlpha's common stock.

In addition, up to $3 million in potential earn-out payments may be made over three years, contingent on Be My Neighbor achieving specific revenue and EBITDA targets. The earn-out payments, which may be in cash or stock at reAlpha's discretion, are payable in three tranches.

The shares issued under the agreement will be subject to a 180-day restrictive period, and their total number will not exceed 19.99% of reAlpha's outstanding shares without stockholder approval. If the number exceeds this limit, reAlpha will pay cash instead.

reAlpha said the acquisition will integrate Be My Neighbor's mortgage lending and refinancing services into reAlpha's homebuying platform.