GWG Holdings Inc., the beleaguered alternative investment manager that is likely heading into bankruptcy, got more bad news this week when the Nasdaq Stock Market Inc. informed the company that its failure to file its annual report, or Form 10-K, had started the clock on the company's losing its stock listing.
Shares of GWG Holdings hit a new low of $1.78 in trading Thursday morning.
Over the past several years, GWG Holdings sold $1.6 billion in bonds backed by life settlements through a network of independent broker-dealers. Advisers charged 7% to 8% sales commissions on the GWG bonds. It's not clear what value those bonds have right now.
Last Friday, GWG Holdings signaled that the next potential step for the company was to file for bankruptcy protection. In a filing with the Securities and Exchange Commission, GWG said it was unable to file its 2021 annual report and additional financial statements because it hadn’t yet hired an auditor to replace Grant Thornton, which resigned at the end of last year.
According to a statement from GWG Holdings after the market closed Wednesday, the Nasdaq notice says the company is required to submit a plan within 60 days on how it will get back into compliance with the exchange's listing rules. If the plan is accepted, Nasdaq can grant the company up to 180 days from the due date of the Form 10-K to regain compliance and continue trading.
A company spokesperson declined to comment.
The start of 2022 has been a difficult few months for GWG and its bondholders. In January, it failed to make $13.6 million in combined interest and principal payments for its L Bonds series, ultimately defaulting on those bonds.
Meanwhile, the price of GWG shares has plummeted. The $1.78 price of the shares Thursday morning is down from $9.65 at the end of last year.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
