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GWG Holdings Receives Nasdaq Notification of Non-Compliance with Listing Rule 5250(c)(1)

1119 Days ago

MINNEAPOLIS, April 22, 2019 (GLOBE NEWSWIRE) -- GWG Holdings, Inc. (Nasdaq: GWGH) today announced that it received a letter from the Listing Qualifications Department of the Nasdaq Stock Market  on April 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). 

The Nasdaq notice has no immediate effect on the listing or trading of the Company’s common stock on the Nasdaq Capital Market.

On April 2, 2019, GWGH filed with the Securities and Exchange Commission a Notification of Late Filing pursuant to Rule 12b-25 of the Securities Exchange Act of 1934, indicating that it was unable, without unreasonable effort and expense, to complete its financial statements as of and for the year ended December 31, 2018 within the time period required to timely file its Annual Report on Form 10-K for the fiscal year ended December 31, 2018. The Company’s inability to timely file the Form 10-K was due, in part, to a delay in finalizing the accounting for certain assets and liabilities exchanged pursuant to the Amended and Restated Master Exchange Agreement, dated January 18, 2018, as amended, between the Company and The Beneficient Company Group, L.P., among others, which exchange was completed on December 28, 2018. The Company indicated at the time that it expected to file the Form 10-K no later than April 16, 2019, which is the fifteenth calendar day filing extension period afforded registrants under Rule 12b-25 of the Securities Exchange Act of 1934.

As of April 16, 2019, the Company remained unable to file the Form 10-K. As a result, on April 16, 2019, in accordance with standard procedures related to the delayed filing of the Form 10-K with the Securities and Exchange Commission, the Company received a letter from Nasdaq indicating that the Company is not in compliance with the filing requirements for continued listing under Nasdaq Listing Rule 5250(c)(1). The Nasdaq letter provides that the Company has 60 calendar days from the date it received Nasdaq’s notification letter to submit a plan to regain compliance with Nasdaq's filing requirements for continued listing. Upon acceptance of the Company’s compliance plan, Nasdaq is permitted to grant an extension of up to 180 days from the Form 10-K's filing due date for the Company 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-K, and that filing of the Form 10-K 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), is the parent company of GWG Life, Life Epigenetics and YouSurance.  GWG Life is a leading provider of liquidity to owners of life insurance in the secondary market. GWG owns a portfolio of alternative life insurance assets equaling $1.96 billion in face value of policy benefits as of September 30, 2018. Life Epigenetics is commercializing epigenetic technology for the longevity life insurance industry and other industries. YouSurance is a digital life insurance agency working to embed epigenetic testing into life insurance products to provide consumers a value-added ecosystem that supports their health and wellness. For more information about GWG, visit www.gwgh.com.

Cautionary Statement Regarding Forward-Looking Statements
This 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. These forward-looking statements include, among other things, statements about our anticipated timeframe for filing our Annual Report on Form 10-K for the year ended December 31, 2018 . 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 we make. More information about potential factors that could affect our business and financial results is contained in our filings with the Securities and Exchange Commission. 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 Securities and Exchange Commission. We do not intend, and undertake no duty, to release publicly any updates or revisions to any forward-looking statements contained herein.

For GWG Holdings
Dan Callahan
(612) 746-1935

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