Message #34 From:
NewsBot Date: January 4, 2007 07:36:00 AM
USAT News USA Technologies Redeems $4.3 Million in Convertible Senior Notes
MALVERN, Pa.--(BUSINESS WIRE)--USA Technologies (OTC Bulletin Board: USAT) announced today that it has
redeemed Convertible Senior Notes (the “Notes)
having a face value of $4,341,121 prior to their maturity. The
redemption of the Notes, which were convertible into shares of the
Company’s common stock, carried interest rates
of 10% and 12% and were scheduled to mature on June 30, 2007, December
30, 2007 and December 31, 2008. The early redemption of the Notes is
expected to save the Company approximately $500,000 in interest expense
in calendar year 2007. The Company prepaid the Notes from cash on hand
as well as the proceeds of the recently completed $8.4 million private
placement. After repayment of the notes, the Company reports that as of
December 31, 2006, it had approximately $8.4 million cash on hand, and
roughly $20 million in shareholder equity, which represents the
strongest balance sheet in the history of the Company.
“We believe that the redemption of the Notes
significantly improves the Company’s balance
sheet and strengthens its financial condition,”
said George R. Jensen, Jr., Chairman and CEO of USA Technologies. “The
private placement that we recently completed with a quality group of
institutional investors also provides us with the working capital
necessary to capitalize on the numerous opportunities available for
growth through expanded sales of the Company's e-Port®
cashless payment product and sales of our EnergyMiser®
energy management solutions. It will also allow USA Technologies to
enhance relationships with many of our blue-chip list of customers,
including MasterCard, Cadbury Schweppes, and the Coca-Cola Bottling
Company of Philadelphia.”
About USA Technologies:
USA Technologies is a leader in the networking of wireless non-cash
transactions, associated financial/network services and energy
management. USA Technologies provides networked credit card and other
non-cash systems in the vending, commercial laundry, hospitality and
digital imaging industries. USA Technologies is an IBM Business Partner.
The Company has marketing agreements with Cingular Wireless, Honeywell,
Blackboard, and ZiLOG Corporation. For further information on USA
Technologies, please visit www.usatech.com
Statement under the Private Securities
Litigation Reform Act:
With the exception of the historical information contained in this
release, the matters described herein contain forward-looking statements
that involve risk and uncertainties that may individually or mutually
impact the matters herein described, including but not limited to, the
ability of the Company to increase revenues in the future due to the
developing and unpredictable markets for its products, the ability to
achieve a positive cash flow, the ability to obtain orders for its
products , the ability to obtain new customers and the ability to
commercialize its products, which could cause actual results or revenues
to differ materially from those contemplated by these statements.
