Rochester-based Document Security Systems Inc. last month closed on an upsized underwritten public offering with gross proceeds of roughly $24 million.
The multinational company operating businesses focused on brand protection technology and securitized digital assets issued 6.67 million shares of common stock at a price of $3.60 per share. DSS said it intends to use the proceeds from the offering, together with existing cash, to fund the development and growth of new business lines, acquisition opportunities and general corporate and working capital needs.
DSS also granted the underwriter a 45-day option to purchase up to an additional 15 percent of shares of common stock, which would increase the total gross proceeds to $27.6 million. On Jan. 28, DSS said the underwriter had exercised its full over-allotment option, acquiring an additional 1 million shares at $3.60 per share.
This week, DSS announced a joint venture with Coinstreet Partners, a global decentralized digital investment banking group and digital asset financial service firm, and GSX Group, a global digital exchange ecosystem for the issuance, trading and settlement of tokenized securities.
The collaboration combines traditional capital market experience, fintech innovations and business networks from three continents including North America, Europe and Asia to capitalize on unique digital asset opportunities, officials said.
“We have been looking for the right opportunity to accelerate our digital asset business and believe this collaboration will provide a strong foundation for success,” said DSS CEO Frank Heuszel. “The transformative potential of digital securities is extremely exciting and we look forward to pursuing the massive opportunity in the U.S. for a secondary market in securities tokens.”
The newly-formed joint venture will first pursue a digital securities exchange license in the U.S. Moving Forward, the joint venture will be the key operational company building and operating a digital securities exchange that uses the GSX STACS blockchain technology, serving corporate issuers and investors in the sector. STACS is a Singapore fintech firm.
“For the past four years, Coinstreet has been focusing on primary market activities for STO and digital assets in the international market,” said Coinstreet Founder and CEO Samson Lee. “We are delighted to establish a strategic partnership with DSS and GSX to develop a digital asset exchange in the U.S. This is a major step forward for Coinstreet and it will allow us to vertically integrate our primary market services with regulated secondary trading venues in the U.S., which is a very important market for us.”
Citing a survey from the World Economic Forum, officials said 10 percent of the world’s gross domestic product will be tokenized by 2027, with an estimated market capitalization of $24 trillion.
“Through this strategic joint venture, we are realizing our vision to establish a paradigm shift in the capital markets,” said GSX CEO Nick Cowan. “With the help of our new partners, DSS and Coinstreet, and using our underlying bespoke blockchain for securities, the GSX STACS network, we believe this new exchange will provide some exciting opportunities for U.S. and global issuers.”