Deal settles with investor Fletcher International at $5.29 per share
By Devika Patel
Knoxville, Tenn., Jan. 5 - Document Security Systems, Inc. gave further details about a private placement of stock that settled Dec. 31 in an 8-K filed Wednesday with the Securities and Exchange Commission. The deal raised $4 million.
The company sold 756,287 common shares at $5.29 apiece to Fletcher International, Ltd. The price per share reflects a 1.67% discount to the Dec. 30 closing share price of $5.38.
Fletcher also received warrants for $4 million in shares, which are exercisable at $5.29 until Dec. 31, 2019.
The investor may make an additional $4 million equity investment by May 2 at the volume-weighted average price of the stock in the month preceding each investment notice date at prices no lower than $4.76 per share and no greater than $6.35 per share. It will receive a warrant with this investment for an amount of shares equal to the dollar amount of the investment. This warrant will be exercisable at 120% of the price per share sold in the investment.
Wm Smith & Co. was the agent.
Proceeds will be used primarily for sales and marketing, product development and working capital.
"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," chief executive officer Patrick White said in a press release on Jan. 3.
Based in Rochester, N.Y., Document Security develops technologies used to detect counterfeit documents and currency.
| Issuer: | Document Security Systems, Inc.
|
| Issue: | Common stock
|
| Amount: | $4 million
|
| Shares: | 756,287
|
| Price: | $5.29
|
| Warrants: | For $4 million in shares
|
| Warrant expiration: | Dec. 31, 2019
|
| Warrant strike price: | $5.29
|
| Agent: | Wm Smith & Co.
|
| Investor: | Fletcher International, Ltd.
|
| Settlement date: | Dec. 31
|
| Stock symbol: | Amex: DMC
|
| Stock price: | $5.39 at close Dec. 31
|
| Market capitalization: | $100.74 million
|
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