Document Security Systems Announces Multi-Year Contract Valued at $6 Million Per Annum with One of World’s Largest Retailers

Rhea-AI Summary

Document Security Systems, Inc. (DSS) has announced a three-year, $6 million annual contract with a major retailer through its subsidiary, Premier Packaging Corp. The contract covers the supply of photo mailing envelopes and cartons and may extend to a fourth year, potentially totaling over $24 million. This deal underlines Premier's growth potential and effectiveness, fueled by recent investments in manufacturing and quality improvements. Production is set to start in Q3 2020, with the retailer planning to open 550 new stores, which could further enhance contract value.

Positive

• Secured a three-year contract with a major retailer, valued at $6 million annually.
• The contract could exceed $24 million if extended for a fourth year.
• Recent investments in manufacturing are resulting in increased capacity and capability.

Negative

• Dependence on a single large contract could pose risks if terms aren't met.
• Future store openings may not guarantee additional contract value.

ROCHESTER, N.Y., July 13, 2020 (GLOBE NEWSWIRE) -- Document Security Systems, Inc. (NYSE American: DSS), a multinational company operating businesses focusing on brand protection technology, blockchain security, direct marketing, healthcare, real estate, and securitized digital assets, today announced its Premier Packaging Corp. (Premier) subsidiary signed a three-year contract with one of the world’s largest retailers to supply photo mailing envelopes and folding cartons for prints, posters, canvas decors, photo books, passport photos, and business printing. The contract is valued at approximately $6 million per year and may be renewed for a fourth year.

“This is a major win for Premier and solidifies our relationship with a long-term customer,” commented Jason Grady, Chief Operating Officer of DSS. “The fact that we beat out our competitors for this highly prized contract valued in excess of $24 million is evidence of the strength and capabilities of our printing and packaging division. As we transform DSS into a multinational aggressive growth company, we will continue to pursue new opportunities to land major contracts with national retailers.”

Since taking over in July 2019, the DSS management team has transformed Premier’s operations, investing in new manufacturing equipment, people, and processes to increase its capacity, improve quality and delivery, and ensure it has the horsepower it needs to support its customers and grow with their changing demands.

“Our customer’s commitment to Premier demonstrates that the investments we have made into our business strategy are starting to show. These resources are the foundation and position this division for substantial growth,” continued Grady.

Production on this contract will begin in the third quarter of 2020. Finished goods will ship to the customer’s more than 9000 locations. The retailer expects to open an additional 550 stores over the next 12 months, which will potentially increase the value of the contract.

For over 25 years Premier has been a market leader in providing innovative and secure solutions for printing and packaging. Premier is the smart packaging, and security printing division of DSS.

With operations based in Victor, NY, and distribution facilities on both coasts of the US, Premier services a variety of nationally and regionally based customers. Premier’s client list includes customers in the medical device, consumer goods, nutraceutical, photo marketing and food and beverage industries. Premier differentiates itself with an empathetic approach to customer service driven by being a full service, end-to-end solution provider that is large enough to be a complete resource, while maintaining flexibility to react to ever changing market and customer supply chain demands.

About Document Security Systems, Inc.

DSS is a multinational company operating businesses focused on brand protection technology, blockchain security, direct marketing, healthcare, real estate, and securitized digital assets. Its business model is based on a distribution sharing system in which shareholders will receive shares in its subsidiaries as DSS strategically spins them out into IPOs. Its historic business revolves around counterfeit deterrent and authentication technologies, smart packaging, and consumer product engagement. DSS is led by its Chairman and largest shareholder, Mr. Fai Chan, a highly successful global business veteran of more than 40 years specializing in corporate transformation while managing risk. He has successfully restructured more than 35 corporations with a combined value of $25 billion.

For more information on DSS visit http://www.dsssecure.com.

Investor Contact:

Dave Gentry, CEO
RedChip Companies Inc.
407-491-4498
Dave@redchip.com

Safe Harbor Disclosure

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements related to the Company's intended use of proceeds and other statements that are not historical facts. Forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that may cause actual results or events to differ materially from those projected. These risks and uncertainties, many of which are beyond our control, include: risks relating to our growth strategy; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; risks relating to the results of development activities; our ability to attract, integrate and retain key personnel; our need for substantial additional funds; patent and intellectual property matters; competition; as well as other risks described in the section entitled "Risk Factors" in the prospectus and in our other filings with the SEC, including, without limitation, our reports on Forms 8-K and 10-Q, all of which can be obtained on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date on which they are made and reflect management's current estimates, projections, expectations and beliefs. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.

 

FAQ

What contract did Document Security Systems announce on July 13, 2020?

DSS announced a three-year contract through its subsidiary Premier Packaging Corp. to supply packaging solutions valued at approximately $6 million per year.

How much could the DSS contract with the retailer be worth in total?

The contract could be valued at over $24 million if it is renewed for a fourth year.

When will production for DSS's new contract begin?

Production on the contract is set to begin in the third quarter of 2020.

What does the new contract signify for Document Security Systems?

The contract signifies a major win for DSS, showcasing the strength of its printing and packaging division.

How is Document Security Systems positioned for future growth?

DSS has made significant investments in its subsidiary, Premier, enhancing its operations and increasing capacity for growth.