VendTek Systems Inc. (announces a restructuring with new strategic business
focus for selling its
e-Fresh technology in North American and on the deployment of a North
American e-Fresh Network.
As a result of delays in orders for e-Fresh stations from its principal UK
customer as well as a decline in traditional product orders the Company is
accelerating its plans for e-Fresh sales in North America and on an e-Fresh
Network in North America.
“Although we are frustrated with the delays in product roll-out through our
existing UK customer we are nonetheless excited about the opportunities our
technologies present. If the ongoing delays persist it will mean that we
will likely not meet 2000 revenue levels so we have implemented layoffs,
work sharing and are optimizing infrastructure to reduce overhead during
this transition.” says VendTek CEO Paul Brock. “Even though the Company will
now increase its focus on the North American business opportunity we do
expect an upturn in international e-Fresh sales and in traditional sales by
first quarter 2002. We plan to continue our technology development for
licensing and to look to our overseas partners to create value from our
technologies in international markets.
To fund the Company through this restructuring and to implement the new
strategic focus we are in the process of sourcing additional equity
The e-Fresh Network enables cellular and other service providers to
distribute prepaid services electronically to consumers via a proprietary
real time network and self-serve kiosks called e-Fresh Stations. The e-Fresh
Network consists of a central server running VendTek’s transaction
processing software connected to multiple e-Fresh stations. The system
includes proprietary encryption technology for securing the transmission of
the transactions and significantly reduces the operating costs for
companies, improving efficiencies and profits.
VendTek uses its expertise in payment and self-serve technologies, smart
cards and networking to develop systems for transaction automation.
VendTek’s secure proprietary systems reduce shrinkage, improve access for
consumers, increase the number of selling outlets and selling hours, and
enhance overall security making the systems superior to traditional
distribution and alternative channels.