The stock of Document Security Systems, Inc. (DSS) declined in the current market after the company announced its common stock issue for purchase to Alset EHome International, Inc. (AEI). DSS values at around $0.37, losing more than 9.84% from the previously closed value. At the end of the previous trading session, the stock closed at $0.41. The stock traded volume in the last trading session was around 909.08K shares.
Reason for the stock decline
As part of the deal, Document Security Systems agreed to issue up to 44,619,423 shares of common stock to Alset EHome International, Inc. (AEI) for a purchase price of $0.3810 per share. According to the NYSE American, LLC regulations and laws, the Company’s shareholders will have to give their consent before any new shares are issued.
Alset EHome International, the firm’s principal stakeholder, has shown high confidence in the enterprise, according to the company. Due to the additional strength that our balance sheet has gained as a result of this newest cash infusion, we will be able to quickly capitalize on the plethora of possibilities across our different business lines.
A previous couple of years has seen us work relentlessly to lay the groundwork for long-term wealth generation for our stockholders. According to the corporation, this approach is now entering its second phase, which will exploit this base to enhance revenue growth and eventually push bottom-line success.
The effect on the stock
The deal will result in some equity purchase of DSS by Alset EHome International, Inc. (AEI). Its stock might increase after the deal if the net proceedings gained from the deal are used correctly by Document Security Systems.
Conclusion
Document Security Systems, Inc. (DSS) stock is currently less than $1. To continue, they must value more than $1.00 per share. That is why they might have offered the common stock purchase agreement to AEI to use the net proceedings as working capital.
