GREENWICH, Conn., June 25, 2012 /PRNewswire/ -- S.A.V.E. Partners IV, LLC, which together with its nominees and certain other shareholders are members of a group ("SAVE") that collectively owns 3,196,739 shares of common stock of USA Technologies, Inc. (NASDAQ: USAT) ("USAT" or the "Company"), representing approximately 9.8% of the Company's outstanding shares, today issued the following release:
USAT continues to bombard its shareholders with an expensive scorched earth public relations campaign in an effort to convince you that SAVE, the Company's largest shareholder, will not act in the best interests of shareholders if you elect our seven highly-qualified nominees to the Board. The Board has no doubt spent countless dollars of your money to win an election that is critical to your Company's future, but it distorts the facts to sway your vote through a smear campaign of epic proportions. We believe USAT's Board of Directors will say just about anything to preserve their own jobs regardless of the ultimate cost to shareholders. SAVE believes you need to have the facts:
Bradley Tirpak voluntarily resigned from the USAT Board because he believed the Board's business plan following Stephen Herbert's promotion to CEO was not in shareholders' long-term best interests.
After June 2011, Mr. Tirpak was SAVE's sole shareholder representative on the Board. During that time, Mr. Tirpak firmly believes that:
- Every action he took as a Board member was done with shareholders' best interests in mind. Mr. Tirpak was then, and continues to be, a significant shareholder who is 100% dedicated to maximizing shareholder value.
- Mr. Tirpak was a vocal defender of shareholder interests on a Board that was more concerned with protecting its own self-interests. We believe this is clearly evidenced by the fact that Mr. Tirpak was the sole director who, as a result of a decline in the stock price, waived the egregious 35% pay raise that the Board members voted for themselves.
- Mr. Tirpak was the target of bogus code of ethics claims manufactured by a Board that simply did not want to hear the tough questions Mr. Tirpak had to ask.
- Unlike other Board members, Mr. Tirpak actively sought to engage with customers, employees and shareholders of the Company to solicit their views about the Company and ensure their concerns were being addressed in the boardroom.
- If USAT is going to continue to subsidize the JumpStart program, the Company needs to lower the cost of hardware significantly to produce positive returns for shareholders. To assist in this endeavor, SAVE has nominated George Wallner, the founder of Hypercom, who will lead the charge to reengineer the devices in a cost-effective manner. We believe Mr. Wallner is a leading innovator in the payments industry.
- Shareholders should not be satisfied with the incremental revenues currently being generated through transaction processing. SAVE believes USAT should be generating profits not just revenues.
- The Company needs to vastly improve its technology and focus on providing its customers with comprehensive, end-to-end solutions (like vending route management) in order to avoid losing further market share to its competitors.