Document Security Systems, Inc. Closes $6 Million Underwritten Public Offering of Common Stock

Rhea-AI Summary

Document Security Systems (DSS) has completed an underwritten public offering, raising $6.0 million through the sale of 769,230 shares at $7.80 per share. The company plans to allocate the net proceeds towards developing new business lines, acquisition opportunities, and covering operational costs associated with unprofitable ventures. Additionally, underwriters have a 45-day option to purchase up to 15% more shares. The offering follows an effective registration statement filed with the SEC.

Positive

• Raised $6.0 million in gross proceeds to fund growth and development.
• Intends to use proceeds for new business lines and acquisitions.

Negative

• Potential dilution of existing shares if the underwriters exercise their option to purchase additional shares.

ROCHESTER, N.Y., June 19, 2020 (GLOBE NEWSWIRE) -- Document Security Systems, Inc. (NYSE American: DSS), a multinational company operating businesses focused on brand protection technology, blockchain security, direct marketing, healthcare, real estate, and securitized digital assets, today announced that it has completed an underwritten public offering (the “Offering”) with gross proceeds of $6.0 million before deducting underwriting discounts and commissions and other estimated offering expenses. The Offering included 769,230 shares of the Company’s common stock at the public offering price of $7.80 per share. The Company intends to use the net proceeds from this offering to fund development and growth of new business lines and acquisition opportunities, general corporate and working capital needs, and costs related to the closing of unprofitable business lines and facilities.

The Company has also granted the underwriters a 45-day option to purchase up to an additional 15% of the number of shares of common stock offered in the public offering to cover over-allotments, if any, at the public offering price, less the underwriting discounts and commissions.

Aegis Capital Corp. acted as sole bookrunner for the offering.

The offering was made pursuant to an effective registration statement on Form S-1 (File No. 333-238587) previously filed with the U.S. Securities and Exchange Commission (the "SEC") and declared effective by the SEC on June 16, 2020. A final prospectus describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov.

Electronic copies of the final prospectus, when available, may be obtained by contacting Aegis Capital Corp., Attention: Syndicate Department, 810 7th Avenue, 18th floor, New York, NY 10019, by email at syndicate@aegiscap.com, or by telephone at (212) 813-1010.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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 was the total amount raised in DSS's public offering?

DSS raised $6.0 million in gross proceeds from its public offering.

What is the price per share in the DSS public offering?

The public offering price for DSS shares was $7.80 each.

What will DSS use the proceeds from the offering for?

The proceeds will be allocated to develop new business lines, acquisitions, and to cover operational costs related to unprofitable business lines.

What option do the underwriters have regarding the DSS offering?

Underwriters have a 45-day option to purchase an additional 15% of the shares offered.

Where can I find more information about the DSS public offering?

More information can be found in the final prospectus filed with the SEC.