USA Technologies nixes plans for $5 million equity purchase agreement

Arrangement with Lincoln Park conflicted with $10.73 million placement

By Devika Patel

Knoxville, Tenn., March 17 - USA Technologies Inc. canceled plans for an equity purchase agreement with Lincoln Park Capital Fund, LLC, according to an 8-K filed Thursday with the Securities and Exchange Commission. The $5 million arrangement priced on July 27 and on March 16, the company reported it was required to cancel the deal as a condition to a $10.73 million private placement of stock it priced on March 14.

The company had planned to sell common shares to Lincoln Park over 25 months in tranches of up to 150,000 shares with no fixed discount. USA Technologies was permitted to terminate the agreement for any or no reason.

In the March 14 placement, which is expected to settle March 24, the company will sell 5.2 million common shares at $2.064 per share, a 20% premium to $2.58, the March 11 closing share price. Investors will also receive five-year warrants for 3.9 million shares, which are each exercisable at $2.6058, a 1% premium to the March 11 closing price.

Proceeds will be used to repay debt or redeem any outstanding securities.

USA Technologies provides services and technology for wireless non-cash transactions and energy management.

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