On December 16, 2019, Jernigan Capital, Inc. (the "Company"), Jernigan Capital Operating Company, LLC (the "Operating Company"), JCap Advisors, LLC (the "Manager"), Dean Jernigan, John A. Good and Jonathan L. Perry (each of them, together with the Manager, the "Manager Parties") entered into an Asset Purchase Agreement (the "Purchase Agreement") pursuant to which, among other things, the Operating Company will acquire substantially all of the operating assets and liabilities of the Manager and each of the employees of the Manager is expected to become an employee of the Company (the "Internalization"). As a result of the Internalization, the Manager will cease to perform any outside management services for the Company and the Company will become internally managed. On December 16, 2019, Dean Jernigan, the executive chairman of the Board, informed the Board of his resignation from the Board effective December 31, 2019. Mr. Jernigan informed the Board that his resignation was a result of his retirement and not the result of any disagreements with the Company, the Board or management. On December 16, 2019, the Board appointed John A. Good, the Company's chief executive officer, as chairman of the Board, effective December 31, 2019.