- The stock price of Document Security Systems, Inc. (NYSEAMERICAN: DSS) fell by over 40% pre-market. This is why it happened.
The stock price of Document Security Systems, Inc. (NYSEAMERICAN: DSS) – 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 – fell by over 40% pre-market. Investors are responding negatively to Document Security Systems announcing 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.
The public offering equates to 29 million shares of the company’s common stock at a price of $1.50 per share. And the company plans 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 $1.50 price per share is a 49.5% downside to the previous closing of the stock price.
Document Security Systems 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 million if exercised in full.
Aegis Capital Corp. is acting as the sole book-runner for the offering.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
