MINNEAPOLIS, May 23, 2019 (GLOBE NEWSWIRE) -- GWG Holdings, Inc. (GWGH) today announced that it received a letter from the Listing Qualifications Department of the Nasdaq Stock Market on May 17, 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.
As previously reported, on April 16, 2019, the Company received a similar letter from Nasdaq stating the Company was not in compliance with the filing requirements for continued listing under Nasdaq Listing Rule 5250(c)(1) as a result of the Company being unable to timely file its Annual Report on Form 10-K for the fiscal year ended 2018. The Company’s inability to timely file its 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.
For the same reasons, as of May 15, 2019, the Company was unable to timely file its Quarterly Report on Form 10-Q for the fiscal quarter ending March 31, 2019. As a result, on May 17, 2019, in accordance with standard procedures related to the delayed filing of the Form 10-Q with the Securities and Exchange Commission, the Company received the letter from Nasdaq stating the Company is not in compliance with the filing requirements for continued listing under Nasdaq Listing Rule 5250(c)(1).
Nasdaq’s letter provides that the Company has until June 17, 2019 to submit a plan to regain compliance with Nasdaq's filing requirements for continued listing. If the Company submits an acceptable 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 for fiscal year ended 2018 and Form 10-Q for the fiscal quarter ending March 31, 2019. If the Company is unable to regain compliance prior to June 17, 2019, it expects to do so within the Nasdaq extension period.
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. GWG’s interests in other alternative assets are held and managed by The Beneficient Company Group, L.P. and its general partner, Beneficient Management, LLC. Life Epigenetics is commercializing epigenetic technology for the 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 fiscal year ended December 31, 2018 and our Quarterly Report on Form 10-Q for the fiscal quarter ending March 31, 2019, and our ability to obtain from Nasdaq an extension of the period during which we are permitted to regain compliance with Nasdaq's filing requirements for continued listing. 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