Company sells common stock, warrants at 20% discount to market price
By Devika Patel
Knoxville, Tenn., March 14 - USA Technologies, Inc. arranged a private placement of stock on March 14, according to an 8-K filed Monday with the Securities and Exchange Commission. The $10.73 million offering is being conducted by agent Chardan Capital Markets LLC.
The company will sell 5.2 million common shares at $2.064 per share. The price per share is a 20% discount to $2.58, the March 11 closing share price.
Investors will also receive warrants for 3.9 million shares, which are each exercisable at $2.6058 for five years. The strike price reflects a 1% premium to the March 11 closing share price.
Settlement is expected March 24.
Proceeds will be used for working capital, primarily in connection with the revival of the company's Jump Start program.
Based in Malvern, Pa., USA Technologies provides services and technology for wireless non-cash transactions and energy management.
| Issuer: | USA Technologies, Inc.
|
| Issue: | Common stock
|
| Amount: | $10,732,800
|
| Shares: | 5.2 million
|
| Price: | $2.064
|
| Warrants: | For 3.9 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.6058
|
| Agent: | Chardan Capital Markets LLC
|
| Pricing date: | March 14
|
| Settlement date: | March 24
|
| Stock symbol: | Nasdaq: USAT
|
| Stock price: | $2.58 at close March 11
|
| Market capitalization: | $54.88 million
|
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