USAT Regains Financial Reporting Compliance Following Nasdaq Delisting, Secures $20M Equity Financing

Posted On: 10/11/2019

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MALVERN, PA -- USA Technologies Inc. announced that it is now in compliance with its periodic reporting requirements. The new filings and restatements all are the result of an internal investigation USAT announced in September 2018.

USAT's shares were delisted from the Nasdaq Global Market Sept. 26 when the company failed a final Sept. 23 deadline extensions to file required reports with the Securities and Exchange Commission. | READ MORE

Since then USAT's shares have been quoted on the OTC market. Digital Transactions News reported that a USAT spokesperson said the company will begin the process of working to resume trading on the Nasdaq.

"We are pleased to have completed our audit and restatements in order to regain compliance with our periodic reporting requirements," USAT chief executive Stephen P. Herbert said in a news release. "Over the past year, we have improved procedures and controls while continuing to grow our customer base and connection count."

In a letter to shareholders , Herbert also announced that USAT raised $20 million in a private placement of common stock with Antara Capital Master Fund LP. Antara also committed $30 million in debt financing.

Despite the delayed filing controversy, USAT reported that revenues rose 8.5% in fiscal 2019 to $143.8 million; it also reported a net loss of $32 million compared with an $11.3 million loss a year earlier. The company added 141,000 net new connections to its payment network in fiscal 2019, bringing the total to nearly 1.17 million. Its customer count grew by 3,169 to 19,400.