Asta Funding, Inc. Announces Preliminary Results of its Tender Offer
February 16 2017 - 4:05PM
Asta Funding, Inc. (NASDAQ:ASFI) (“Asta” or the “Company”) today
announced the preliminary results of its self-tender offer, which
expired February 15, 2017, at 11:59 p.m., New York City time. Based
on the preliminary count by American Stock Transfer & Trust
Company LLC, the depositary for the tender offer, a total of
approximately 6,072,291 shares of the Company’s common stock were
validly tendered and not validly withdrawn, including approximately
141,039 shares that were tendered through notice of guaranteed
delivery. The number of shares conditionally tendered was 400 based
on the preliminary count by the depositary.
Because the tender offer is oversubscribed by approximately
758,282 shares, the Company expects to purchase only a prorated
portion of the shares properly tendered by each tendering
stockholder. The depositary has informed the Company that the
preliminary proration factor for the tender offer is expected to be
approximately 87.51% of the shares validly tendered and not validly
withdrawn. The number of shares tendered and not validly withdrawn
and the proration factor are preliminary and are subject to
verification by the depositary and the proper delivery of all
shares tendered (including shares tendered pursuant to the
guaranteed delivery procedures). The final number of shares to be
purchased in the tender offer and the final proration factor will
be announced following the expiration of the guaranteed delivery
period and the completion by the depositary of the confirmation
process. Payment for the shares accepted for purchase pursuant to
the tender offer, and the return of all other shares tendered and
not purchased, will occur promptly thereafter. The shares expected
to be acquired represent approximately 44.7% of the total number of
shares of the Company’s common stock issued and outstanding as of
February 6, 2017.
Innisfree M&A Incorporated is acting as information agent
for the tender offer (the “Information Agent”) and American Stock
Transfer & Trust Company LLC is acting as depositary for
the tender offer. For more information about the tender offer,
please contact the Information Agent at (888) 750-5834.
About Asta Funding, Inc.
Asta Funding, Inc. (NASDAQ:ASFI), headquartered in Englewood
Cliffs, New Jersey, is a diversified financial services company
that assists consumers and serves investors through the strategic
management of four complementary business segments: Personal Injury
Claims, Structured Settlements, Consumer Debt and Disability
Advocacy. Founded in 1994 as a sub-prime auto lender, Asta now
manages business units that include funding of personal injury
claims through its wholly owned subsidiary, Simia Capital, LLC;
structured settlements through its wholly owned subsidiary, CBC
Settlement Funding LLC; acquiring and managing international
distressed consumer receivables through its wholly owned
subsidiary, Palisades Acquisitions LLC; and benefits advocacy
through its wholly owned subsidiary, GAR Disability Advocates, LLC.
For additional information, please visit our website at
http://www.astafunding.com.
Cautionary Note Regarding Forward-Looking
Statements
All statements in this news release other than statements of
historical facts, including without limitation, statements
regarding our future financial position, business strategy,
budgets, projected revenues, projected costs, and plans and
objectives of management for future operations, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements generally can be
identified by the use of forward-looking terminology such as "may,"
"will," "expects," "intends," "plans," "projects," "estimates,"
"anticipates," or "believes" or the negative thereof, or any
variation thereon, or similar terminology or expressions. We have
based these forward-looking statements on our current expectations
and projections about future events. These forward-looking
statements are not guarantees and are subject to known and unknown
risks, uncertainties and assumptions about us that may cause our
actual results, levels of activity, performance or achievements to
be materially different from any future results, levels of
activity, performance or achievements expressed or implied by such
forward-looking statements. Important factors which could
materially affect our results and our future performance include,
without limitation, our ability to purchase defaulted consumer
receivables at appropriate prices, changes in government
regulations that affect our ability to collect sufficient amounts
on our defaulted consumer receivables, our ability to employ and
retain qualified employees, changes in the credit or capital
markets, changes in interest rates, deterioration in economic
conditions, negative press regarding the debt collection industry
which may have a negative impact on a debtor's willingness to pay
the debt we acquire, and statements of assumption underlying any of
the foregoing, as well as other factors set forth under "Item 1A.
Risk Factors" in our Annual Report on Form 10-K for the year ended
September 30, 2016, and other filings with the U.S. Securities and
Exchange Commission (the “SEC”). All subsequent written and oral
forward-looking statements attributable to us, or persons acting on
our behalf, are expressly qualified in their entirety by the
foregoing. Except as required by law, we assume no duty to update
or revise any forward-looking statements.
Investor Contact:
Bruce R. Foster, CFO
Asta Funding, Inc.
(201) 567-5648
Asta Funding (NASDAQ:ASFI)
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