ENGLEWOOD CLIFFS, N.J., Aug. 24, 2012 (GLOBE NEWSWIRE) -- Asta Funding, Inc. (Nasdaq:ASFI) (the "Company"), a consumer receivable asset management and liquidation company, announced today that pursuant to its shareholder rights plan the Company has issued one preferred share purchase right for each of the Company's common stock held by shareholders of record as of the close of business on September 3, 2012. Each Right will entitle the holder to purchase one one-thousandth of a share of Series A Preferred Stock that will be established by the Company, at an exercise price of $45.00 for one-thousandth of a preferred share. The preferred shares will be structured so that the value of one one-thousandth of a preferred share will approximate the value of one share of the Company's common stock.
The Company stated that the purpose of the plan is to protect the long-term value of the Company for its shareholders and to protect shareholders from various unfair takeover tactics, including attempts to acquire control of the Company at an inadequate price. The plan is designed to give the Company's Board of Directors sufficient time to study and respond to an unsolicited takeover attempt. Adoption of the plan was unanimously approved by the Company's directors and was not in response to any specific attempt to acquire the Company or its shares, and the Company is not aware of any current efforts to do so.
The terms of the Rights Agreement provide for the Company's shareholders of record at the close of business on September 3, 2012 to receive one right for each outstanding common share held. In general, the rights will become exercisable if a person or group acquires 20% or more of the Company's common stock or announces a tender offer or exchange offer for 20% or more of the Company's common stock.
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