DSS receives $4 million equity investment from Fletcher International
Thursday, January 06, 2011
Press release from the issuing company
Rochester, N.Y. - Document Security Systems, Inc., a world-wide developer and manufacturer of security and authentication solutions which prevent counterfeiting and brand fraud announced today that on December 31, 2010 Fletcher International, Ltd., an affiliate of Fletcher Asset Management, Inc., ("Fletcher") acquired $4.0 million of DMC common stock at $5.29 per share as part of an equity purchase agreement between the two firms.
Under the agreement, Fletcher received the right to make an additional equity investment of up to $4 million during the early part of 2011, and certain warrants that may be exercised for a certain number of years. The full potential share purchase, together with the warrants, if exercised in their entirety for cash, could total $16.0 million at prices ranging between approximately $4.76 and $7.62 per share, subject to adjustment as provided in the transaction documents.
Wm Smith & Co. acted as placement agent for this transaction. Details of the transaction will be included in a Form 8-K to be filed by DSS with the Securities & Exchange Commission.
Said Patrick White, CEO of Document Security Systems, "This funding provides us with the additional resources necessary to leverage our new strategic relationships, improve our working capital position, expand our sales and marketing presence, accelerate our digital product development, and continue pursuing the tremendous market opportunities that we have identified as part of our growing business model."
"We are very excited by Fletcher's investment and confidence in DMC as a long-term financial partner in our business," said Robert Fagenson, non-executive Chairman of the Board of DSS.
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