Asta Funding Announces Share Repurchase Program for $20M

Asta Funding ASFI today announced that its Board of Directors has authorized a share repurchase program for up to $20,000,000 of the Company's common stock. Gary Stern, CEO of the Company, commented, "Our open market repurchases by the Company over the course of the next year reflects the Board of Director's continued confidence in our business strategy and growth prospects as we continue to seek portfolio investments and acquisitions in the financial services industry. Based on current market prices, we believe the repurchase program is prudent and in the best interests of our shareholders," further stated Mr. Stern. The program calls for the repurchases to be made in open market or in privately negotiated transactions from time to time in compliance with applicable laws, rules, and regulations, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended, subject to cash requirements for other purposes, and other relevant factors, such as trading price, trading volume and general market and business conditions. The Company anticipates disclosing its third quarter earnings the first week of August after which time share repurchases may commence. There is no guarantee as to the exact number of shares that will be repurchased by the Company, and the Company may discontinue repurchases at any time that the Board of Directors determines additional repurchases are not warranted. All of the repurchases will be funded by the Company's available working capital and the duration of the repurchase program is 12 months, although it may be extended, suspended or discontinued without prior notice. As of June 16, 2011, Asta had approximately 14.6 million shares outstanding, and approximately $102 million in cash and cash equivalents.