DSS Expands Footprint of DSS Securities through Acquisition of 24.9% of Broker-Dealer Sentinel Brokers Company

Rhea-AI Summary

DSS acquires 24.9% of Sentinel Brokers Company, Inc. as part of its strategic expansion in the financial services sector. The agreement includes an option to buy an additional 50.1%, aimed at enhancing the ecosystem around DSS Securities. Established in 1996, Sentinel, a FINRA-registered broker-dealer, specializes in institutional trading of bonds and preferred stocks. DSS aims to leverage this acquisition to accelerate its digital securities business and capitalize on growth opportunities in the industry.

Positive

• Option to acquire an additional 50.1% of Sentinel enhances strategic position.
• Acquisition expected to accelerate DSS's digital securities business.
• DSS expands its footprint in the high-growth financial services sector.

Negative

• None.

DSS has option to buy additional 50.1% of Sentinel

ROCHESTER, N.Y., May 24, 2021 (GLOBE NEWSWIRE) -- Document Security Systems, Inc. (“DSS” or the “Company”) (NYSE American: DSS), a multinational company operating business segments in blockchain security, direct marketing, healthcare, consumer packaging, real estate, renewable energy, and securitized digital assets, today announced the further expansion of its DSS Securities, Inc. business through an acquisition of 24.9% of Sentinel Brokers Company, Inc. (“Sentinel”), a FINRA-registered broker-dealer. Terms of the agreement include the option to acquire an additional 50.1% of Sentinel.

“We are thrilled to further expand the footprint of DSS Securities,” stated Frank D. Heuszel, CEO of DSS. “Owning a broker-dealer will help to accelerate our plans to build out an ecosystem around this high-growth, high-return potential segment of our operations.”

Founded in 1996 by Joseph Lawless, Sentinel primarily operates as a financial intermediary, facilitating institutional trading of municipal and corporate bonds as well as preferred stock.

“Markets are continually evolving,” commented Lawless. “As Sentinel celebrates our 25th anniversary this year, it's exciting to engage a synergistic strategic partner the caliber of DSS that has tremendous vision and resources giving it the ability to capitalize on a wealth of opportunities. I am excited to work with the DSS team as we move forward.”

“This is great opportunity to accelerate the trajectory of our digital securities business,” commented Jason Grady, Chief Operating Officer of DSS. “We plan to continue to invest qualified ventures as opportunities warrant, effectively allocating the capital we have available to drive growth and maximize returns.”

DSS Securities completed its acquisition of 24.9% of Sentinel through its wholly owned subsidiary, Sentinel Brokers, LLC.

About Document Security Systems, Inc.

DSS is a multinational company operating business segments in blockchain security, direct marketing, healthcare, consumer packaging, real estate, renewable energy, 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 is the significance of DSS acquiring 24.9% of Sentinel?

The acquisition allows DSS to expand its financial services and digital securities business, with plans to buy an additional 50.1%.

When was DSS's acquisition of Sentinel Brokers announced?

The acquisition was announced on May 24, 2021.

How does this acquisition affect DSS's market position?

It enhances DSS's strategic position in the financial services sector, allowing for growth in digital security offerings.

What is Sentinel Brokers Company known for?

Sentinel primarily operates as a financial intermediary, facilitating institutional trading of municipal and corporate bonds.

What are the future plans for DSS after acquiring Sentinel?

DSS plans to invest in qualified ventures and drive growth through its newly expanded digital securities business.