Document Security Systems Inc. (DSS), the former patent licensing company trying to reinvent itself as a printer company, said it has raised $150,000 from the sale of 681,818 shares of common stock at a purchase price of 22 cents a share.
The purchasers, who were not identified, also will receive four-year warrants to purchase up to an aggregate of 136,364 additional shares of common stock, first exercisable on or after April 22, 2016.
Rochester, N.Y.-based DSS is trying to recapitalize and rethinking its business model after suffering a stinging defeat in the patent infringement suit brought by its Bascom Research LLC unit in December against LinkedIn and Facebook, which led to a $37 million impairment charge and a net loss of $41.2 million in 2014.
DSS disclosed the sale in a filing with the Securities and Exchange Commission on Oct. 23, though the sales occurred Oct. 21. The company previously said on Oct. 5 it entered into securities purchase agreements with investors for an aggregate of $1.05 million of common stock and warrants.
The offerings are being made pursuant to a prospectus supplement filed with the SEC on September 17, 2015, and an accompanying prospectus dated November 1, 2013, under a shelf registration statement that effective on November 1, 2013.
DSS said the offering is ongoing, and is expected to consist of multiple closings on the same terms to occur on or before Oct. 30. The company is offering a number of shares of common stock that could result in aggregate sales proceeds of up to $2.02 million.
No placement agent or underwriter is involved in the offering.
CEO Jeff Ronaldi, who is in talks with the company about the extension of his employment contract, which expires Nov. 9, couldn't be reached for comment.
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