ROCHESTER, N.Y., Aug. 21, 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 the closing of the Company's acquisition of Impact BioMedical.
"We are excited to report the official closing of our Impact BioMedical acquisition," stated Frank D. Heuszel, CEO of DSS. "This transaction is a major milestone for DSS and provides us the opportunity to follow through on our vision of sharing the economic benefits of our success with our shareholders."
The Company's long-term plans for Impact BioMedical include taking it public through an initial public offering ("IPO"). As previously announced, in concert with this public offering, DSS anticipates a proposed two-part 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 first tranche of the planned Bonus share dividend intends to provide shareholders with two shares of Impact BioMedical for every share of DSS they hold. The DSS Board of Directors is expected to meet in the immediate future to set a record date for this tranche. The second tranche of the planned Bonus share dividend is expected to provide an additional two shares of Impact BioMedical to the DSS 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 there can be no assurance that Impact BioMedical will be taken public and/or that any Bonus share distribution will occur, particularly due to unforeseen circumstances including fulfilling the pre-requisite criteria during the IPO application process and market forces beyond the Company's control, it is the intention of management and the Board to take Impact BioMedical public and to reward DSS shareholders via the issuance of Bonus shares.
DSS announced its acquisition of Impact BioMedical in March 2020. Impact BioMedical's ownership of a suite of antiviral and medical technologies has been valued at $382 million by Destum Partners, known globally for its high level of expertise and capability in independently valuing and advising on pharmaceutical technology. On May 26, 2020, Impact BioMedical disclosed that it received a valuation of $933 million for this suite of technology from a different independent valuation firm. Unlike theprevious valuation, thenew valuation takes into consideration numerous additional disease applications of the suite of antiviral and medical technologies.