USA Technologies Inc (USAT)

[FUNMAN]

Why USA Technologies Shares Jumped


tigerpac, you did good.

Took advantage of traders being scared after S-1 filed and bought more at 10.70 then sold everything 45 minutes later at 11.47.

Will revisit later..stock has the volatility that I like. Long term it looks like a sure winner imo.

Maybe you should have gotten back in.


https://www.fool.com/investing/2018/05/23/why-usa-technologies-shares-jumped.aspx


The cashless payment specialist has successfully raised equity capital to fund future growth.


Evan Niu, CFA (TMFNewCow)


May 23, 2018 at 1:02PM


What happened


Shares of USA Technologies (NASDAQ:USAT) have jumped today, up by 13% as of 12:15 p.m. EDT, after the company reported it had priced a secondary offering. The $50 million offering had been announced earlier this month.

So what


The public offering price was $11 per share, and the company sold over 5.4 million shares. The gross proceeds raised from the deal that will go to USA Technologies were approximately $59.8 million before factoring in underwriting discounts and commissions and other expenses associated with the offering. There were an additional 553,000 shares sold by existing shareholders (venture capital firm Foundation Capital); those proceeds will not go to USA Technology.


Underwriters have a 30-day option to purchase up to an additional 897,000 shares.


Now what


In the offering's registration statement, the company says it expects to use the proceeds for "general corporate purposes and working capital to support anticipated growth." The deal will replenish the company's coffers, although existing shareholders will be mildly diluted. USA Technologies had $17.1 million in cash and cash equivalents at the end of the first quarter.



Foundation Capital had acquired USA Technologies shares after the company bought Cantaloupe and is selling over half of its position. The fund will still hold 474,000 shares after the offering. USA Technologies expects 2018 revenue to be $138 million to $142 million.