Document Security System Inc. (NASDAQ: DSS) stock declined by 6.76% at last close while the DSS stock price falls by 18.48% in the after-hours session. Brand protection technology, Blockchain security, direct marketing, healthcare, consumer packaging, real estate, renewable energy, and securitized digital assets are all areas of concentration for DSS. Its business concept is centered on a distribution sharing scheme, in which stockholders would get shares in DSS subsidiaries when they are strategically spun off into first public offerings (IPOs).
DSS reported the price of an underwritten public offering, with net proceeds to DSS projected to be around $43.5 million before underwriting discounts and commissions, as well as other projected offering expenditures.
The public offering entails the sale of 29,000,000 shares of DSS common stock for $1.50 each. DSS plans to use the gross profits of this offering, along with cash on hand, to contribute to the development and expansion of new business units, acquisition prospects, and general corporate and working capital needs.
DSS has also given the underwriters a 45-day right to acquire up to an additional 15% of the common stock sold in the public offering to meet over-allotments, if any, bringing the total revenue of the offering to $50.0 million if fully exercised. The offering is being led by Aegis Capital Corp., which is acting as the sole bookrunner.
DSS announced the acquisition of 24.9 percent of Sentinel Brokers Company, Inc., which is a FINRA-registered broker-dealer, as part of its DSS Securities, Inc. business. The deal includes the option to purchase a further 50.1 percent of Sentinel. Sentinel is a financial intermediary that facilitates institutional trading of municipal and corporate bonds and also preferred stock. It was founded in 1996 by Joseph Lawless.
Frank D. Heuszel, CEO of DSS stated,
DSS is ecstatic to be able to expand DSS Securities’ reach even further. The efforts to build up an atmosphere around this high-growth, high-return potential part of their activities will be aided by owning a broker-dealer.