Current Report Filing (8-k)
August 27 2020 - 6:01PM
Edgar (US Regulatory)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): August 21, 2020
DOCUMENT
SECURITY SYSTEMS, INC.
(Exact
name of registrant as specified in its charter)
New
York
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001-32146
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16-1229730
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(State
or other jurisdiction
of
incorporation)
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(Commission
File
Number)
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(IRS
Employer
Identification
No.)
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200
Canal View Boulevard
Suite
104
Rochester,
NY
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14623
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code: (585) 325-3610
Not
Applicable
(Former
name or former address, if changed since last report.)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2. below):
[ ]
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class
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Ticker
symbol(s)
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Name
of each exchange on which registered
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Common
Stock, $0.02 par value per share
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DSS
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The
NYSE American LLC
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Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company [ ]
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.01 Completion of Acquisition
or Disposition of Assets.
On August 21, 2020, Document Security Systems,
Inc. (the “Company”), completed its acquisition of Impact BioMedical, Inc. (“Impact BioMedical”), pursuant
to a Share Exchange Agreement by and among the Company, DSS BioHealth Security, Inc. (“DSS BioHealth”), Singapore
eDevelopment Ltd., and Global Biomedical Pte Ltd. (“GBM”), which was previously approved by the Company’s shareholders
(the “Share Exchange”). Under the terms of the Share Exchange, the Company issued 483,334 shares of the Company’s
common stock, par value $0.02 per share, nominally valued at $6.48 per share, and 46,868 newly issued shares of the Company’s
Series A Convertible Preferred Stock (“Series A Preferred Stock”), with a stated value of $46,868,000, or $1,000 per
share, for a total consideration valued at $50 million. As a result of the Share Exchange, Impact BioMedical is now a wholly-owned
subsidiary of DSS BioHealth, the Company’s wholly-owned subsidiary.
As previously disclosed, Heng Fai Ambrose
Chan is the Chief Executive Officer and largest shareholder of Singapore eDevelopment, as well as the Chairman of the Board and
largest shareholder of the Company.
Prior to the execution of the Share Exchange
Agreement, Impact BioMedical’s ownership of a suite of antiviral and medical technologies was valued at $382 million through
a required independent valuation that was completed by Destum Partners. Because the valuation was higher than the previously agreed
value, the purchase price was capped at a value of $50 million as previously disclosed by the Company.
Item
3.02 Unregistered Sales of Equity Securities.
The
disclosure set forth above in Item 2.01 of this Current Report on Form 8-K is incorporated by reference herein.
The securities above were offered and sold pursuant to an exemption from the registration requirements under Section 4(a)(2) of
the Securities Act since, among other things, the transactions did not involve a public offering.
Item
5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
In
connection with the Share Exchange described in Item 3.02 above, on August 18, 2020, the Company filed a Certificate of Amendment
of its Certificate of Incorporation (the “Certificate of Amendment”) to increase the authorized the number of authorized
shares of the Company, including 200,000,000 shares of Preferred Stock, with a par value of $0.02, of which 46,868 shares were
designated Series A Preferred Stock. The Certificate of Amendment, the form of which was previously disclosed in a Schedule 14A
Definitive Proxy Statement filed with the Securities and Exchange Commission on July 14, 2020, is attached hereto as Exhibit 3.1
and is incorporated by reference.
Item
8.01 Other Information.
On
August 21, 2020, the Company issued a press release announcing the closing of its acquisition of Impact BioMedical, Inc. A copy
of this press release is filed as Exhibit 99.1 hereto and is incorporated herein by reference.
Item
9.01 Financial Statements and Exhibits.
(a) Financial
Statements of Business Acquired.
The audited consolidated financial statements
of Impact BioMedical, which include the consolidated balance sheets as of December 31, 2019 and December 31, 2018, the consolidated
statement of operations for the years ended December 31, 2019 and December 31, 2018, the consolidated statements of stockholders’
equity for the years ended December 31, 2019 and December 31, 2018, the consolidated statements of cash flows for the years ended
December 31, 2019 and December 31, 2018 and the notes related thereto (collectively, the “Audited Consolidated Financial
Statements”); and unaudited condensed interim consolidated financial statements of Impact BioMedical, which include the
consolidated balance sheets as of March 31, 2020 and December 31, 2019, the consolidated statement of operations for the three
months ended March 31, 2020 and December 31, 2019, the consolidated statements of stockholders’ equity for the period ended
March 31, 2020 and March 31, 2019, the consolidated statements of cash flows for the three months ended March 31, 2020 and March
31 ,2019, and the notes related thereto (collectively, the “Interim Unaudited Consolidated Financial Statements”)
are included as Exhibit 99.2 and 99.3, respectively, to this Current Report on Form 8-K and incorporated herein by reference.
As permitted by
Item 9.01(a)(4) of Form 8-K, the financial statements for the interim period ending June 30, 2020 required by Item 9.01(a)
of Form 8-K, will be filed by the Company by an amendment to this Current Report on Form 8-K not later than
71 days after the date upon which this Current Report on Form 8-K must be filed.
(b) Pro Forma
Financial Information.
The Company and Impact BioMedical’s
unaudited pro forma condensed combined financial statements, which include the unaudited pro forma condensed combined balance
sheet as of March 31, 2020 and December 31, 2019, the unaudited pro forma condensed combined statement of operations for the three
months ended March 31, 2020 and for the year ended December 31, 2019, and the notes related thereto, are included as Exhibit 99.4,
respectively, to this Current Report on Form 8-K and incorporated herein by reference
As permitted by Item 9.01(b)(2) of Form 8-K, the pro forma financial information
for the interim period ending June 30, 2020 required by Item 9.01(b) of Form 8-K will be filed by the Company by an amendment
to this Current Report on Form 8-K not later than 71 days after the date upon which this Current Report on Form 8-K must
be filed.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to
be signed on its behalf by the undersigned hereunto duly authorized.
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DOCUMENT
SECURITY SYSTEMS, INC.
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Dated:
August 27, 2020
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By:
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/s/
Frank D. Heuszel
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Name:
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Frank
D. Heuszel
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Title:
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Chief
Executive Officer and Interim Chief Financial Officer
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