GWG Holding announced that it has received clearance from the SEC to file with the SEC and mail to its stockholders a definitive Information Statement on Schedule 14C relating to its transaction with The Beneficient Company Group, L.P. and associated parties. GWGH anticipates that the transaction will close by December 27, 2018.
GWG Holdings announced that Brian Bailey has joined the company as its Chief Investment Officer. Bailey joins GWGH after serving as Managing Director of Beal Bank's Longevity Group for the past nine years. Prior to joining Beal Bank, Bailey founded and led a start-up group at Wells Fargo Foothill. ADditionally, Craig Opp has joined the firm as its General Counsel. Opp has worked on multimillion dollar transactions, restructurings and acquisitions at Ditech, Incenter and Green Tree Investment Management.
Concurrent with the investment in the Series B Preferred Stock, GWG Holdings 's Board of Directors declared a special dividend of $4.30 per share of common stock, or approximately $25M, payable in cash on September 5 to shareholders of record on August 27. In addition, the Company's Board of Directors earmarked the remaining $25M of the Preferred Stock investment to be used for the benefit of its insurtech initiative involving the commercialization of epigenetic technology for the life insurance industry.
GWG Holdings reported that it has agreed with The Beneficient Company and other parties to amend their Master Exchange Agreement, as previously amended on April 30, 2018, to extend the Closing Conditions Date to July 30, 2018. GWG Holdings and BEN anticipate an initial closing encompassing a significant portion of the economics of their strategic transaction in short order, subject to a further amendment of the Master Exchange Agreement. The anticipated initial closing contemplates a distribution to the Seller Trusts of $150M of cash consideration by BEN, the issuance by GWGH to the Seller Trusts of approximately $400M of L-Bonds, the extension of a commercial loan from GWGH to BEN in the amount of $200M, and the distribution of approximately $200M of BEN MLP Units to GWGH from the Seller Trusts. GWG Holdings and BEN continue to work toward a timely closing of the remaining portion of their strategic transaction, involving GWG Holdings' issuance of common stock to the Seller Trusts and receipt by GWGH of its remaining BEN MLP Units, upon the satisfaction of pending regulatory requirements including the compilation and disclosure of BEN financial statements through June 30, 2018.