UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): January 19, 2021

 

DOCUMENT SECURITY SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

 

New York   001-32146   16-1229730

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

200 Canal View Boulevard

Suite 104

Rochester, NY

  14623
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (585) 325-3610

 

Not Applicable

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Ticker symbol(s)   Name of each exchange on which registered
Common Stock, $0.02 par value per share   DSS   The NYSE American LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company [  ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

 

 

 

 

 

Item 1.01 Entry into a Material Definitive Agreement.

 

On January 19, 2021, Document Security Systems, Inc., a New York corporation (the “Company”), entered into an underwriting agreement, as amended by Amendment No. 1 effective as of January 19, 2021 (the “Underwriting Agreement”), with Aegis Capital Corp. (“Aegis”), as representative of the underwriters, which provided for the issuance and sale by the Company and the purchase by the underwriters, in a firm commitment underwritten public offering (the “Offering”), of 6,666,666 shares of the Company’s common stock, $0.02 par value per share. Subject to the terms and conditions contained in the Underwriting Agreement, the shares were offered in a public offering at a price of $3.60 per share, less certain underwriting discounts and commissions. The Company also granted the underwriters a 45-day option to purchase up to 1,000,000 additional shares of the Company’s common stock on the same terms and conditions for the purpose of covering any over-allotments in connection with the Offering. The net offering proceeds to the Company from the Offering are approximately $21.7 million, after deducting estimated underwriting discounts and commissions and other estimated offering expenses, and assuming no exercise of the over-allotment option. The Company intends to use the net proceeds from this offering to fund the development and growth of new business lines, acquisition opportunities, and general corporate and working capital needs.

 

The Offering closed on January 22, 2021 and was made pursuant to the Company’s registration statement on Form S-1 (File No. 333- 249857), which was declared effective by the Securities and Exchange Commission (the “SEC”) on January 19, 2021 under the Securities Act of 1933, as amended (the “Securities Act”), and the Company’s Registration Statement on Form S-1MEF (File No. 333- 252239). A final prospectus describing the terms of the Offering was filed with the SEC on January 22, 2021 and is available on the SEC’s website located at http://www.sec.gov.

 

The Underwriting Agreement contains customary representations, warranties and covenants of the Company, customary conditions to closing, indemnification obligations of the Company and the Underwriter, including for liabilities under the Securities Act, and termination and other provisions customary for transactions of this nature. The Company’s executive officers and directors have also agreed not to sell or transfer any securities of the Company held by them for a period of 90 days from January 22, 2021, subject to limited exceptions.

 

This Current Report on Form 8-K contains forward-looking statements that involve risks and uncertainties, such as statements related to the use of proceeds from the Offering, as well as other risks detailed from time to time in the Company’s filings with the SEC.

 

The foregoing summary of the Underwriting Agreement and Amendment No. 1 to the Underwriting Agreement are qualified in their entirety by reference to the full text of the Underwriting Agreement and Amendment No. 1 to the Underwriting Agreement, copies of which are filed herewith as Exhibit 1.1 and 1.2, respectively, to this Current Report on Form 8-K and incorporated herein by reference.

 

Item 8.01 Other Information.

 

On January 19, 2021, the Company issued a press release announcing the pricing of the Offering. A copy of this press release is filed as Exhibit 99.1 hereto, and incorporated herein by reference.

 

On January 22, 2021, the Company closed its previously announced underwritten public offering of 6,666,666 shares of its common stock. In connection with the closing, the Company issued a press release announcing the closing of the offering. A copy of the press release is included as Exhibit 99.2 to this Form 8-K and is incorporated herein by reference.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits:

 

Number   Description
1.1   Underwriting Agreement, dated January 19, 2021, by and between Document Security Systems, Inc. and Aegis Capital Corp.
1.2  

Amendment No.1 to Underwriting Agreement, dated January 19, 2021, by and between Document Security Systems, Inc. and Aegis Capital Corp.

99.1   Press Release issued January 19, 2021
99.2   Press Release issued January 22, 2021

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

 

  DOCUMENT SECURITY SYSTEMS, INC.
     
Dated: January 22, 2021 By: /s/ Frank D. Heuszel
  Name: Frank D. Heuszel
  Title: Chief Executive Officer