DSS Provides Update on its Liquid Value Asset Management Subsidiary

Rhea-AI Summary

DSS, Inc. (NYSE American: DSS) announced the launch of Liquid Value Asset Management Limited (LVAM), a Hong Kong-based investment management firm, primarily owned by its subsidiary DSS Financial Management, Inc. (DFMI). DFMI has provided a $1 million working capital loan to expedite LVAM's operations, which will commence with $9 million in proprietary trading. LVAM aims for attractive risk-adjusted returns using advanced algorithmic trading strategies. CEO Wilson Lee and his team will manage the firm, which targets scalable trading programs and rapid portfolio liquidation capabilities.

Positive

• Launch of LVAM, enhancing DSS's investment management capabilities.
• DFMI provides a $1 million loan to accelerate LVAM's launch.
• Potential for consistent 20% annual returns with a Sharpe ratio over 2.0.
• Scalable trading program targeting $250 million in assets.

Negative

• None.

ROCHESTER, N.Y., Oct. 20, 2021 (GLOBE NEWSWIRE) -- DSS, 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 an update on the launch and funding of Liquid Value Asset Management Limited (“LVAM”), a Hong Kong-based investment management company engaging in proprietary algorithmic trading and majority owned by the Company’s wholly owned DSS Financial Management, Inc. (“DFMI”) subsidiary.

Under the terms of a shareholders’ agreement between DFMI and HR1 Holdings Limited (“HR1”), DFMI owns 60% of the shares of LVAM and has appointed three of the five directors of LVAM. The remaining two directors have been appointed by HR1, which owns the other 40% of LVAM.

DFMI has provided a $1 million working capital loan facility to accelerate the launch of LVAM, which will begin proprietary trading with $9 million before the establishment of an investment fund. The $9 million in capital is being provided through loans of $3 million each from DFMI, BMI Capital Partners International Limited, and Wilson Lee, principal of HR1. In addition, DFMI has agreed to provide $3 million in seed capital upon establishment of the fund to begin trading operations. HR1, through its principal, Wilson Lee, will also contribute $3 million in capital upon the establishment of the fund and will seek to attract third-party investments of $2 million, which DFMI has agreed to match dollar-for-dollar.

Wilson Lee, former co-head of Societe Generale’s equity derivatives in Asia, has been named CEO of LVAM. Lee is joined by Jackson Kwan, a former portfolio manager at Citadel in Chicago, as well as a dedicated team of eight experienced staff members. LVAM has an exclusive license to HR1’s ATS Commander software, an automated stock trading program that aims to increase trading efficiency through faster execution and management of trading strategies for algorithm-based trading. LVAM will use privately developed algorithms expected to generate consistent 20% per annum returns with a Sharpe ratio over 2.0.

“We are excited to move this project forward as a cornerstone of our growing DSS Securities segment,” stated Frank D. Heuszel, CEO of DSS. “LVAM’s highly liquid trading program is immediately scalable up to $250 million, and as that milestone is achieved, it will look to expand its strategies to reach more than $1 billion in assets under management.”

The aim of LVAM’s algorithmic trading will be to include short- and long-term trades while offering the unique attribute of being able to liquidate the portfolio into cash within 5 to 10 minutes under normal market conditions. Together with the strong performance track record of the team, these attributes position LVAM as a prime vehicle for private and institutional investors seeking a highly liquid investment fund with extremely attractive risk adjusted returns relative to the volatility and unpredictability of the markets.

About DSS, 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, Heng 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 Liquid Value Asset Management Limited and its role within DSS?

Liquid Value Asset Management Limited (LVAM) is an investment management firm focused on algorithmic trading, primarily owned by DSS Financial Management, Inc. LVAM aims to enhance DSS's capabilities in investment management.

How much initial capital is LVAM starting with?

LVAM will begin proprietary trading with $9 million, funded through loans from DFMI and other investors.

What returns does LVAM project from its algorithmic trading strategies?

LVAM's proprietary trading strategies aim for consistent returns of 20% per annum with a Sharpe ratio over 2.0.

Who is overseeing the management of LVAM?

Wilson Lee, former co-head of Societe Generale’s equity derivatives in Asia, has been appointed CEO of LVAM.

What are the growth expectations for LVAM according to DSS?

DSS anticipates LVAM's trading program to scale up to $250 million, with plans to expand strategies to manage over $1 billion in assets.