Document Security Systems, Inc. (“DSS” or the “Company”) (NYSE
American: DSS), a multinational company operating businesses in
blockchain security, direct marketing, healthcare, consumer
packaging, real estate, renewable energy, and securitized digital
assets, today announced Proof Authentication Corporation (“Proof”)
signed a purchase agreement pursuant to which Proof acquired 100%
of the outstanding shares of DSS Digital, Inc., a wholly-owned
subsidiary of the Company and a leader in innovative
anti-counterfeit, authentication, and
brand protection solutions.
“We set out on a mission to revive DSS and the
sale of our legacy digital group is another major milestone in our
transformation that will enable us to focus on new, higher-return
opportunities to grow shareholder value,” stated Frank D. Heuszel,
CEO of DSS.
Under the terms of the agreement, DSS will
retain and sell to certain key customers through a non-exclusive
license granted by Proof to DSS, while continuing to use the
innovative anti-counterfeiting technology on consumer packaging for
authentication and consumer engagement purposes under the Company’s
Premier Packaging Corp. division. The terms of the deal with Proof
include upfront cash and an earn-out provision that provides for
potential payments to DSS based on the achievement of certain
revenue targets. Riparian Partners, LLC served as financial advisor
to Proof, with Orrick serving as its legal counsel. Sichenzia Ross
Ference LLP served as legal counsel to DSS.
Jason Grady, COO of DSS, stated, “Proof has the
experience and commitment to take our brand protection solutions,
such as AuthentiGuard, to a new level, giving the market an even
better product than we do today. DSS will benefit from Proof’s
efforts as we continue to sell key accounts and incorporate
technology advancements into Premier’s intelligent packaging
solutions.”
“Having worked in this space for over 15 years
from the brand-side of the table, I can confidently say DSS has
some of the best technology in the authentication market today.
Consumers are more aware now than at any time in our history about
the prevalence of counterfeit products in the market. They are
clamoring for a way to ensure the products they are buying are
real. This acquisition allows us to build on DSS’ innovations and
further drive increased value to our client brands and their
consumers around the globe,” added Dan McKinnon, CEO of Proof.
AuthentiGuard is comprised of three key
components that work together to secure brands. Developed from
patented Prism technology and printed on products during normal
printing processes, the AuthentiGuard mark cannot be duplicated or
copied, and it contains embedded codes that hold limitless amounts
of information. The AuthentiGuard application, customizable in
functionality, look and feel, reads the encrypted information to
determine authenticity and deliver alerts and information directly
to users. Brands also have access to an online portal to manage
their program and view real-time data collected from the
application reads.
“While our digital group has been a great
business for DSS over the years, we have moved in a different
direction, investing in new growth opportunities within healthcare,
renewable energy, and other emerging technologies that we believe
present tremendous potential upside for our shareholders,”
continued Heuszel. “We are excited for what the future holds for
our innovate distribution sharing system business model.”
About Proof Authentication Corporation
Proof is a technology sector company that engineers the world’s
premier anticounterfeiting authentication solutions. Proof is
founded on the cornerstone principle that effective authentication
technologies must always be both accurate and ubiquitous. The
company is helmed by Dan McKinnon, former Head of Global Brand
Protection for athletic giant, New Balance, and most notably known
for achieving the world’s largest counterfeit damages award in
China.
For more information on Proof, visit:
www.proofauthentication.com
About Document Security Systems, Inc.
DSS is a multinational company operating businesses focused on
blockchain security, direct marketing, healthcare, consumer
packaging, real estate, 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.
For more information on DSS
visit http://www.dsssecure.com.
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 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.
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