GWG Holdings Receives Nasdaq Notification of Non-Compliance with Listing Rule 5250(c)(1)
August 19 2019 - 4:45PM
GWG Holdings, Inc. (Nasdaq: GWGH) today announced that it
received a letter from the Listing Qualifications Department of the
Nasdaq Stock Market, as anticipated, on August 16, 2019, informing
the Company that it was not in compliance with the filing
requirements for continued listing under Nasdaq Listing Rule
5250(c)(1) as it has not yet filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q for the quarter ended
June 30, 2019, which was due on August 14, 2019.
The Nasdaq notice has no immediate effect on the
listing or trading of the Company’s common stock on the Nasdaq
Capital Market.
As disclosed in its Notification of Late Filing
pursuant to Rule 12b-25 of the Securities Exchange Act of 1934,
filed on August 15, 2019, GWGH’s inability to timely file the Form
10-Q was due to the timing of the GWGH’s recent transition to a new
independent registered public accounting firm, Whitley Penn LLP,
and GWGH’s continued evaluation of the appropriate accounting
treatment for the purchase and contribution transaction completed
in April 2019.
Nasdaq’s letter provides that GWGH has until
October 15, 2019 to submit a plan to regain compliance with
Nasdaq's filing requirements for continued listing. If GWGH submits
an acceptable compliance plan, Nasdaq is permitted to grant an
extension of up to 180 days from the Form 10-Q's filing due date
for GWGH to regain compliance with Nasdaq's filing requirements for
continued listing.
The Company anticipates that it will regain
compliance with the Nasdaq continued listing requirements upon
filing its Form 10-Q within the 60-day period, and that regaining
compliance within the 60-day period will eliminate the need for the
Company to submit a formal plan to regain compliance.
About GWG Holdings, Inc.
(GWG)GWG Holdings, Inc. (Nasdaq: GWGH), the parent company
of GWG Life, Life Epigenetics and YouSurance, is a leading provider
of liquidity to consumers owning life insurance policies, an owner
of a portfolio of alternative assets, and the developer of
epigenetic technology for the life insurance and related
industries. GWG Life provides value to consumers owning illiquid
life insurance products across America, delivering $568 million
more for their policies since 2006 than the cash surrender value on
those policies. GWG Life owns a life insurance policy portfolio of
$2.1 billion in face value of policy benefits as of June 30, 2019.
Life Epigenetics is working to commercialize epigenetic technology
for the life insurance and related industries. YouSurance, a
digital life insurance agency, is working to embed epigenetic
testing into life insurance purchasing to provide consumers a
value-added ecosystem that supports their health and wellness while
reducing the cost of their insurance. GWGH also has a strategic
investment in The Beneficient Company Group, L.P., a financial
services company providing proprietary liquidity solutions to
owners of alternative assets. For more information about GWG
Holdings, email info@gwgh.com or visit www.gwgh.com.
Cautionary Statement Regarding
Forward-Looking StatementsThis press release contains
forward-looking statements that involve substantial risks and
uncertainties. All statements, other than statements of historical
facts, included in this press release regarding our strategy,
future operations, future financial position, future revenue,
projected costs, prospects, plans and objectives of management are
forward-looking statements. The words "anticipate," "believe,"
"estimate," "expect," "intend," "may," "plan," "would," "target"
and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. Forward-looking statements are subject to
risks and uncertainties, which could cause actual results to differ
materially from such statements, including, but not limited to the
risks that we may not be able to file our Quarterly Report on Form
10-Q for quarter ended June 30, 2019 within the currently expected
timeframe, risks that we may not regain compliance with NASDAQ
continued listing requirements within the applicable grace period
and risks associated with analysis and determination regarding the
appropriate accounting treatment for the April 26, 2019 purchase
and contribution transaction, as well as the other risks set forth
in our filings with the SEC. We may not actually achieve the
expectations disclosed in our forward-looking statements, and you
should not place undue reliance on our forward-looking statements.
Actual results or events could differ materially from the
expectations disclosed in the forward-looking statements that we
make. More information about potential factors that could affect
our business and financial results is contained in our filings with
the SEC. Additional information will also be set forth in our
future quarterly reports on Form 10-Q, annual reports on Form 10-K
and other filings that we make with the SEC. We do not intend, and
undertake no duty, to release publicly any updates or revisions to
any forward-looking statements contained herein.
Media Contact:Dan
CallahanDirector of CommunicationGWG Holdings, Inc.(612)
746-1935dcallahan@gwgh.com
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