U.S. Wireless Data, Inc. announced yesterday it has concluded a private placement pursuant to Regulation D of the Securities Act of 1933 by which the Company raised gross proceeds of approximately $3,000,000.
The instrument gives the holder the right to convert principal into shares of USWDA’s common stock in the future at 80% of market price, but not lower than $4 per share for the first 270 days and no higher than $6 per share. The investment instrument carries an 8% coupon, which drops to a 4% coupon once the underlying shares of common stock are registered with the Securities and Exchange Commission.
The coupon is payable in shares of the Company’s common stock. The investment also provides the Company with redemption privileges. The proceeds will primarily be used as working capital to fund the national launch of the Company’s proprietary wireless transactions processing solutions and to repay existing obligations.
The Company plans to file a report on Form 8-K with the Securities and Exchange Commission setting forth further details with respect to the financing.
USWDA also announced it plans to file an application with NASDAQ within the next 21 days for inclusion of its shares to be re-listed and traded on the NASDAQ Small Cap stock market. Re-listing would give the common stock greater visibility and prominence in the financial community. Moreover, trading data of the Company’s common stock would be widely distributed by wire services for dissemination by newspapers and other media.
Evon Kelly, CEO of USWDA stated, “This financing completes the first and most important phase of our turnaround and squarely positions the company to attack the marketplace with its wireless transactions processing solutions. It also shows renewed investor confidence in U.S. Wireless Data and its business strategy. Further, we are excited about the possibility of a future re-listing of our common shares on the NASDAQ Small Cap Market.”
USWDA’s proprietary enabling technology, TRANZ(TM) Enabler, converts a merchant’s existing dial-up TRANZ VeriFone credit-card terminal into a high-speed wireless terminal. It provides merchants with a faster and more cost efficient way to transact business.
The wireless transaction takes 3 to 5 seconds verses 11 to 20 seconds with a dial-up service. Going wireless means the merchant no longer needs a dedicated or shared telephone line to carry transaction traffic, thereby eliminating delays, busy signals and the cost to install or pay for monthly telephone service.
U.S. Wireless Data announced in August, 1997, a joint marketing and operating agreement with GTE Wireless, the wireless business unit of GTE Corp., to distribute USWDA’s TRANZ Enabler wireless credit card processing system using GTE’s cellular CDPD network.
U.S. Wireless Data, Inc. has developed, tested and is now delivering compelling new proprietary products, programs and standards to the transaction processing and credit card industry which utilize Cellular Digital Packet Data (“CDPD”) wireless networks.
USWDA delivers the fastest and most cost-effective transaction processing solution to retail merchants in the United States today — wired or wireless. USWDA will generate recurring revenue from every transaction processed by merchants who utilize the Company’s CDPD wireless technology.
The Company’s strategy will be to deploy its technology through marketing and partnership agreements with major cellular phone companies, regional and community banks, select ISO’s and its own sales force.Details