GWG Holdings, Inc. appointed new CEO

Item 5.02 Departure of Directors or Certain Officers; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers 


GWG Holdings, Inc. (the "Company") is pleased to announce that it has taken steps to prepare for the issuance of a conditional trust banking charter (the "Charter") to The Beneficient Company Group, L.P. ("Ben") by the Kansas Office of the State Bank Commissioner ("OSBC") under the recently enacted Kansas Technology-Enabled Fiduciary Financial Institutions Act ("TEFFI Act"). The Company expects that the TEFFI Act will be a significant benefit to the value of the Company's investment in Ben, as it will provide Ben the necessary regulatory framework to achieve its long-term objective of providing liquidity and other services to holders of alternative asset through a Kansas regulated technology-enabled fiduciary financial institution ("TEFFI") trust bank.


The TEFFI Act directs the OSBC to issue the Charter to Ben on July 1, 2021, as part of the establishment of a fiduciary financial institution pilot program. Ben is in the process of creating a new subsidiary ("Ben TEFFI") to serve as the chartered TEFFI trust bank. Ben has also agreed to fund the pilot program and assist the OSBC in promulgating rules, regulations, and standards ahead of wider adoption. The Company expects that the directors of the Ben TEFFI trust bank will expend significant efforts assisting the OSBC with the promulgation of rules, regulations, and standards as part of the pilot program. As a result, the directors of the Company who will serve on the new TEFFI trust bank Board of Directors have resigned their membership on the Company's Board of Directors to devote their time to serving as directors of the Ben TEFFI trust bank, which the Company believes is the highest and best use of their available time and skills and will support the development of the Ben TEFFI trust bank and the successful execution of Ben's business plan.


Brad K. Heppner, Richard W. Fisher, Derek Fletcher, Thomas O. Hicks, Dennis P. Lockhart, Bruce W. Schnitzer, and Sandra Lawrence are expected to serve on the new board of the Ben TEFFI trust bank. Accordingly, on June 11, 2021, Messrs. Heppner, Hicks, Lockhart and Schnitzer resigned from the Board of Directors and Board committees of the Company, which resignations became effective on June 14, 2021, to join the board of directors of the Ben TEFFI trust bank.


In addition, the Board of Directors has appointed Murray T. Holland, the Company's President and Chief Executive Officer, and Timothy L. Evans, the Company's Chief Financial Officer, as directors of the Company effective as of June 14, 2021, and appointed Mr. Holland as Chairman.


The Board also appointed David H. de Weese, a current member of the Company's Board of Directors, as a member of the Company's Audit Committee after determining that Mr. de Weese was independent under relevant regulatory and listing requirements.


The resignations of Messrs. Heppner, Hicks, Lockhart and Schnitzer were not due to any disagreement with the Company known to an executive officer of the Company on any matter relating to the operations, policies or practices of the Company, and there were no arrangements or understandings regarding the appointments of Messrs. Holland and Evans to the Board of Directors.


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