Document Security Systems, Inc. Prices $43.5 Million Public Offering of Common Stock
June 14 2021 - 8:08PM
Document Security Systems, Inc. (NYSE American: DSS) (the
“Company”), a multinational company operating businesses focusing
on brand protection technology, blockchain security, direct
marketing, healthcare, consumer packaging, real estate, renewable
energy, and securitized digital assets, today announced the pricing
of an underwritten public offering with gross proceeds to the
Company expected to be approximately $43.5 million, before
deducting underwriting discounts and commissions and other
estimated offering expenses payable by the Company.
The public offering equates to 29,000,000 shares
of the Company’s common stock at a price of $1.50 per share. The
Company intends to use the net proceeds from this offering,
together with their existing cash, to fund the development and
growth of new business lines, acquisition opportunities, and
general corporate and working capital needs.
The Company has also granted the underwriters a
45-day option to purchase up to an additional 15% of shares of
common stock offered in the public offering to cover
over-allotments, if any, which would increase the total gross
proceeds of the offering to approximately $50.0 million, if
exercised in full.
Aegis Capital Corp. is acting as sole bookrunner for the
offering.
The shares of common stock are being offered
pursuant to a shelf registration statement on Form S-3 (File No.
333-256446), which was declared effective by the Securities and
Exchange Commission (the "SEC") on June 7, 2021. A prospectus
supplement relating to this offering will be filed by the Company
with the SEC. Copies of the prospectus supplement relating to the
offering, together with the accompanying prospectus, may be
obtained when available on the SEC's website, www.sec.gov, or 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 a solicitation of an offer to buy these securities, 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, 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.
Investor Contact:
Dave Gentry, CEORedChip Companies
Inc.407-491-4498Dave@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 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 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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