USA Technologies Rejects Effort by Hudson Executive Capital to Take Over Board
Summary
MALVERN, Pa.--(BUSINESS WIRE)--USA Technologies, Inc. (OTC: USAT) (“USAT” or the “Company”), a cashless payments and software services company that provides end-to-end technology solutions for the self-service retail market, today issued the following statement in response to a letter issued today by Hudson Executive Capital LP (“Hudson”) and Hudsons founder and Managing Partner Douglas L. Braunstein: Under the banner of “Constructive Engagement,” Mr. Braunstein describes Hudson on its website as a firm seeking “to preserve and drive shareholder value in a cooperative manner, formally forgoing the right to conduct hostile proxy fights and public media tactics.” This appears to be nothing but a sound-bite used by Mr. Braunstein to attract investors and “CEO partners,” and disguise the true nature of his tactics. USA Technologies’ Board of Directors and management team have been engaged in extensive, constructive and good faith discussions with Mr. Braunstein over the past 10 months. The Company is confident that it now has the right people and the right processes in place to provide more effective oversight and control functions, drive operational execution and future growth. As a result, customers ranging from vending machine companies, to operators of micro-markets, gas and car charging stations, laundromats, metered parking terminals, kiosks, amusements and more, can run their businesses more proactively, predictably, and competitively. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, the risk associated with the currently pending litigation or possible regulatory action arising from the internal investigation and its findings, from allegations related to the registration statement for the follow-on public offering, or from potential litigation or other claims arising from the shareholder demands for derivative actions; the ability of the Company to retain key customers from whom a significant portion of its revenues is derived; the ability of the Company to compete with its competitors to obtain market share; whether the Company’s customers continue to utilize the Company’s transaction processing, route scheduling, inventory management, and related services, as customer agreements are generally cancelable by the customer on thirty to sixty days’ notice; whether the Company’s existing or anticipated customers purchase, rent or utilize ePort or Seed devices or the Company’s other products or services in the future at levels currently anticipated by the Company; and whether any appeal to the Nasdaq Listing and Hearing Council of the delisting of the Company’s securities on Nasdaq will be successful or result in the reinstatement of trading of the Company’s securities.