Document Security Systems, Inc. Prices $4 Million Underwritten Public Offering of Common Stock
February 20 2020 - 7:52PM
Document Security Systems, Inc. (NYSE American: DSS), a leader in
anti-counterfeit, authentication and diversion protection
technologies, today announced the pricing of an underwritten public
offering of 22,222,223 shares of the Company’s common stock at a
price of $0.18 per share, with gross proceeds to the Company
expected to be approximately $4 million before deducting
underwriting discounts and commissions and other estimated offering
expenses. The Company intends to use the net proceeds from this
offering to fund development of new business lines, to upgrade
machinery and facilities, to service remaining commitments under
the IP monetization business and for strategic growth initiatives,
including possible acquisitions or investments in complementary
businesses, products, services, technologies or assets, as well as
for working capital and general corporate purposes. Heng Fai
Ambrose Chan, the Chairman of the Company’s Board of Directors,
purchased $2 million of shares in the offering.
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. The offering is expected to close on or about
February 25, 2020, subject to customary closing conditions.
Aegis Capital Corp. is acting as sole bookrunner for the
offering.
This offering is being made pursuant to an effective
registration statement on Form S-1 (No. 333-236082) previously
filed with the U.S. Securities and Exchange Commission (the “SEC”)
and declared effective by the SEC on February 14, 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.
Before investing in this offering, interested parties should read
in their entirety the prospectus and the other documents that the
Company has filed with the SEC that are incorporated by reference
in such prospectus, which provide more information about the
Company and such offering.
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.For over
15 years, DSS has protected corporations, financial institutions,
and governments from sophisticated and costly fraud. DSS'
innovative anti-counterfeit, authentication, and brand protection
solutions are deployed to prevent attacks which threaten products,
digital presence, financial instruments, and identification.
AuthentiGuard(R), the company's flagship product, provides
authentication capability through a smartphone application so
businesses can empower a wide range of employees, supply chain
personnel, and consumers to track their brands and verify
authenticity. For more information on DSS visit
http://www.dsssecure.com.
Investor Contact:Bret ShapiroCoreIR(516)
222-2560ir@dsssecure.com
Safe Harbor DisclosureThis 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 ability to complete the financing, its 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: the risk that the public offering of common
stock may not close; 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 the section
entitled “Risk Factors” and elsewhere in our Annual Report on Form
10-K filed with the SEC on March 15, 2019 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.
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