Former TransAct Technologies CEO Bart Shuldman, who also maintains approximately 93,500 shares of stock, has issued an open letter to the Board of Directors and fellow shareholders to express concerns over the provider’s strategic direction.
“This is not the company we built. At the time of my departure on April 4, 2023, the company had strong operational momentum. The first quarter had concluded, the business was performing well and early traction from the BOHA! T2 platform – including engagement with major customers such as McDonald’s – reflected that progress. The Company’s shares were trading at levels materially higher than today,” Shuldman said.
“Over the three years since, that momentum has not been sustained. The company has not, to my knowledge, meaningfully introduced new products, expanded into new markets or announced significant new large-scale customer wins. During this same period, the company’s share price has declined by more than 50% and has not recovered.”
Despite openly criticizing TransAct’s strategic direction since he stepped down from the CEO role, Shuldman wanted to be “clear” in that “this is not about my departure.”
Shuldman continued: “It has been three years. During that time, I have remained a shareholder and have observed the company’s performance and strategic direction. After this extended period, I believe it is my responsibility to share my perspective.
“This is about restoring focus, discipline and shareholder value. TransAct has valuable assets and a strong foundation. With the right strategy and execution, it has the potential to regain its position – but doing so will require a clear return to its core strengths.”
Shuldman stated TransAct’s current desire to expand into software within the food service market fails to leave the provider with a “clear competitive advantage” and “increases the risk of committing significant capital to compete in an already crowded… market.”
He would go on to recommend TransAct continues focusing on its hardware capabilities, including the BOHA! T2 terminal, rather than invest heavily in software development. Shuldman believes the strategy could allow TransAct to “reduce execution risk, accelerate adoption and better leverage its competitive advantages.”
Sportradar CEO Carsten Koerl released an open letter to shareholders on April 23 regarding the accusations made within short seller reports of maintaining relationships with hundreds of illegal gambling operators
