News

PayStar returns to OTC Bulletin Board

September 30, 2002

LODI, Calif. -- After completing its financial filings, troubled kiosk and ATM provider PayStar Corp. has returned to the OTC Bulletin Board under the symbol PYST.

"Over the course of 2002, PayStar's senior management has successfully executed the repositioning of the company begun in 2001 by removing the company from legacy telephony," chairman and CEO William D. Yotty said in a news release. "PayStar is transitioning into a Global Virtual Network, which includes next-gen financial products and services like GLOBALCash prepaid ATM cards as well as Internet enabling devices."

In September, the company recorded a net loss of $1.2 million on revenue of $484,594 for the second quarter of fiscal year 2002. Prior to that, PayStar was sued for fraud and breach of contract by 100 investors in its ATM and payphone businesses (See story: PayStar accused of fraud in lawsuit).

According to the news release, the company expects a strong fourth quarter based partially on the launch of its First1stResident prepaid ATM card. The card will be used by the U.S. Department of Housing and Urban Development.

PayStar also announced the resignation of its GLOBALCash, Inc. president, William B. Sousa. Sousa is pursuing other personal interests, according to the release.