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

Rhea-AI Summary

GWG Holdings (Nasdaq: GWGH) received a notice from Nasdaq's Listing Qualifications Department for failing to file its Quarterly Report on Form 10-Q for Q1 2021 and its Annual Report on Form 10-K for 2020. The letter indicates non-compliance with Nasdaq Listing Rule 5250(c)(1); however, there is no immediate impact on the trading of GWGH stock. The company must submit a compliance plan by June 15, 2021, and if accepted, it may have up to 180 days to rectify its filings.

Positive

• No immediate effect on GWGH's listing status.
• Opportunity to submit a compliance plan to Nasdaq.

Negative

• Failure to file required reports raises compliance concerns.
• Potential risk of delisting if compliance is not achieved.

DALLAS, May 24, 2021 (GLOBE NEWSWIRE) -- GWG Holdings, Inc. (Nasdaq: GWGH) today announced that it received a letter (the Letter) from the Listing Qualifications Department of the Nasdaq Stock Market (Nasdaq) notifying the company that it was not in compliance with requirements of Nasdaq Listing Rule 5250(c)(1) as a result of not having timely filed its Quarterly Report on Form 10-Q for the period ended March 31, 2021 (the Form 10-Q) and because the company has not yet filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the Form 10-K).

The Letter has no immediate effect on the listing or trading of GWGH’s common stock on the Nasdaq Capital Market. The Letter states that the company is required to submit a plan to regain compliance with Rule 5250(c)(1) by June 15, 2021. If the plan is accepted by Nasdaq, then Nasdaq can grant the company up to 180 calendar days from the due date of the Form 10-K to regain compliance.

About GWG Holdings, Inc.

GWG Holdings, Inc. (Nasdaq: GWGH) is an innovative financial services firm based in Dallas that is a leader in providing unique liquidity solutions and services for the owners of illiquid investments. Through its subsidiaries, The Beneficient Company Group, L.P. and GWG Life, LLC, GWGH owns and manages a diverse portfolio of alternative assets that, as of September 30, 2020, included $1.9 billion in life insurance policy benefits, and exposure to a diversified and growing loan portfolio secured by 122 professionally managed alternative investment funds.

For more information about GWG Holdings, email info@gwgh.com or visit www.gwgh.com.
For more information about Beneficient, email askben@beneficient.com or visit www.trustben.com.

The information on GWG Holdings’ and Beneficient’s websites is not a part of, or incorporated by reference in, this press release.

Media Contact:
Dan Callahan
Director of Communication
GWG Holdings, Inc.
(612) 787-5744
dcallahan@gwgh.com

FAQ

What compliance issue did GWGH face on May 24, 2021?

GWGH was notified by Nasdaq of non-compliance due to the failure to file its Form 10-Q for Q1 2021 and Form 10-K for 2020.

What is the deadline for GWGH to submit a compliance plan?

GWGH must submit a compliance plan to Nasdaq by June 15, 2021.

What happens if GWGH's compliance plan is accepted?

If accepted, GWGH could have up to 180 days to regain compliance with Nasdaq rules.

Is GWGH stock currently at risk of delisting?

There is no immediate risk of delisting; however, compliance must be achieved to avoid future issues.