Gary M. Stern, Chairman, President and Chief Executive Officer of Asta Funding, Inc., offered to acquire an additional 66.8% stake in Asta Funding, Inc. (NasdaqGS:ASFI) for $48.7 million on October 30, 2019. Under the terms of the offer, Gary M. Stern will acquire the shares of Asta Funding, Inc. at a cash purchase price of $10.75 per share. As on April 8, 2020, Gary M. Stern, Chairman, President and Chief Executive Officer of Asta Funding, Inc., Ricky Stern and certain related parties, signed a definitive agreement to acquire 38.2% stake in Asta Funding, Inc. for $28.8 million. As part of the agreement, buyers will acquire all of the publicly held shares of Asta for $11.47 per share for a total consideration of $32.8 million. As per the amendment agreement dated June 25, 2020, Gary M. Stern, Chairman, President and Chief Executive Officer of Asta Funding, Inc., Ricky Stern and certain related parties (Stern Group), will pay $13.1 per share as consideration. Gary M. Stern, Ricky Stern and the related parties collectively own 4.06 million shares of Asta Funding, Inc. Gary M. Stern may also contact members of his family and related entities to join with him in the proposal. Gary M. Stern may seek to obtain financing from third parties in connection with the transaction. The identities of any such third parties and the terms and conditions of any financing with such third parties have not yet been established. The transaction will be funded by a committed loan facility provided by Bank Leumi USA. Upon closing of the transaction, Asta’s common stock will cease trading on the NASDAQ Global Select Market, and Asta will operate as an independent, privately-held company. The agreement can be terminated under certain circumstances. Under specified circumstances, Asta will be required to pay buyers a termination fee of $0.4 million. The buyers will be required to pay Asta a termination fee of $0.5 million. The management of Asta Funding, Inc. is expected to remain in place following the merger along with the rest of its employees. Upon completion, Asta will remain based in Englewood Cliffs, New Jersey. The transaction would be subject to approval by majority of the minority shareholders of Asta Funding, Inc., any applicable waiting period (and any extensions thereof) having been expired or been earlier terminated and any required approvals, consents or clearances shall have been obtained relating to the merger under all applicable regulatory laws, and approval by the special committee of Asta Funding, Inc. A special committee of independent directors of Asta Funding, Inc. is expected to be established to review the offer. As of April 8, 2020, the merger is unanimously approved by the Board of Directors of Asta. The special meeting of stockholders of Asta Funding, Inc. will be held on September 25, 2020. As of September 25, 2020, the shareholders of Asta approved the transaction. The merger is expected to close during Asta’s third fiscal quarter of 2020. As of September 25, 2020, the transaction is expected to close during the week of September 28, 2020. Peter Ladig of Bayard, P.A. and Kevin Waite of Moomjian, Waite & Coleman, LLP acted as legal advisors for the Stern Group. Lincoln International LLC acted as financial advisor and fairness opinion provider to the Special Committee, James Rieger and Ralph Siciliano of Tannenbaum Helpern Syracuse & Hirschtritt LLP acted as legal counsels to the Special Committee, and Scott Jones of Pepper Hamilton LLP acted as legal counsel to the Asta Funding. Troutman Pepper Hamilton Sanders LLP acted as legal advisor for Asta Funding. Laurel Hill Advisory Group, LLC acted as proxy solicitor to Asta Funding, Inc. and will receive $6000 as fee. Lincoln will receive a fee of $0.35 million from Asta for its services related to the proposed transaction, $0.1 million of which was paid upon the execution of Lincoln’s engagement letter, $0.075 million of which was paid upon the execution of the Engagement Letter Amendment No. 1, $0.1 million of which was paid upon Lincoln informing the Special Committee that Lincoln was prepared to render an opinion on April 8, 2020, $0.038 million of which was paid upon the execution of the Engagement Letter Amendment No. 2, and $0.038 of which was paid upon Lincoln informing the Special Committee that Lincoln was prepared to render an opinion on June 19, 2020. David Schwartzbaum of Covington & Burling LLP acted as legal advisor to Lincoln International. Gary M. Stern, Chairman, President and Chief Executive Officer of Asta Funding, Inc., Ricky Stern and certain related parties completed the acquisition of 38.2% stake in Asta Funding, Inc. (NasdaqGS:ASFI) on September 29, 2020. As a result of the closing of the transaction, Asta’s common stock has ceased trading as of September 29, 2020, on the NASDAQ Global Select Market and will be delisted.