Benzinga | Jul 15, 2020 06:46AM EDT

DSS Announces Update On Acquisition Of Impact Biomedical

ROCHESTER, N.Y., July 15, 2020 (GLOBE NEWSWIRE) -- Document Security Systems, Inc. ("DSS" or the "Company") (NYSE:DSS), a multinational company operating businesses focusing on brand protection technology, blockchain security, direct marketing, healthcare, real estate, and securitized digital assets, is pleased to announce an update of its impending acquisition of Impact BioMedical as outlined in the share exchange agreement ("Transaction") announced on April 27, 2020, signed by DSS, DSS BioHealth Security, Inc. (a wholly-owned direct subsidiary of DSS), Impact BioMedical Inc. ("Impact BioMedical") and Global BioMedical Pte. Ltd. ("Global BioMedical"). Global BioMedical, which owns all of the stock of Impact BioMedical, is a 100% owned subsidiary of Singapore eDevelopment Limited ("SeD") (SGX: 40V).

SeD announced it has obtained shareholders' approval on June 26, 2020 for the proposed Transaction. The completion of the proposed Transaction is now conditional only upon the approval of the shareholders of DSS. A shareholders' meeting is scheduled to convene on August 10, 2020 to vote on the acquisition.

The DSS long-term plans include seeking to take Impact BioMedical public after the share exchange in an initial public offering ("IPO"). Prior to doing so, and in concert with this public offering, DSS anticipates a proposed dividend of Impact BioMedical shares to its shareholders (except to controlling shareholders of DSS and the Chairman's group of companies), whereby for every one DSS share of common stock held, the shareholder would be entitled to a bonus of four Impact Shares, the Bonus shares. The planned Bonus share dividend would be divided into two tranches; the shareholders of record of a date to be determined but prior to initial public offering would be eligible for two shares for every share of DSS which they hold, and a second dividend of an additional two shares of Impact BioMedical if they were the shareholders of record on the date of the proposed IPO of Impact BioMedical. The issuance of the Bonus shares would occur after the registration and the IPO of Impact BioMedical's shares. While this statement represents the current intentions of DSS management and of its Board, there can be no assurance, however, that Impact BioMedical will be taken public and/or that any such Bonus Share distribution will occur.

The Company's plans are in line with its mission of sharing its economic benefits by giving DSS shareholders bonus shares of its subsidiaries as they are spun out into IPO's.

Frank Heuszel, CEO of DSS, commented, "We look forward to completing the acquisition of Impact BioMedical in the near future, as it will be an important step in fulfilling our mission to reward our shareholders by giving them the opportunity to share in the economic benefits of the companies we acquire."