As a result of the expanded partnership, Beneficient will own ~7.6% and seller trusts, which sold Beneficient partnership units to GWG in an earlier deal, will own ~79% and voting control of GWG's outstanding common stock.
As part of the agreement, GWG's founding shareholders--CEO John Sabes and Steven Sabes--agree to transfer all of their GWG common stock to Beneficient and a limited liability company in exchange for cash and a passive interest in the LLC, which owns ~7% of the Beneficient founder's interest in Beneficient.
The LLC will be controlled by an entity related to Thomas O. Hicks and whose members include entities related to Beneficient Chairman and CEO Brad K. Heppner and Hicks.
GWG will file a restated Q3 2018 statement to reflect the prior Beneficient closing; expects a delay in filing its 2018 Form 10-K.
Previously: GWG gets last regulatory clearance for Beneficient deal (Dec. 7, 2018)
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