Company Forms DSS International, Inc. Subsidiary to Expand International Market Reach for its AuthentiGuard Anti-Counterfeiting and Brand Protection Technology
ROCHESTER, NY--(Marketwired - Sep 20, 2017) - Document Security Systems, Inc. (NYSE American: DSS), ("DSS", the "Company"), a leader in anti-counterfeit, authentication, and diversion protection technologies whose products and solutions are used by governments, corporations and financial institutions to defeat fraud and to help ensure the authenticity of both digital and physical financial instruments, identification documents, sensitive publications, brand packaging and websites, announced today the formation of DSS International Inc. ("DSS International"), a wholly-owned subsidiary, for the purpose of capturing the immense opportunities it has identified for its AuthentiGuard and related authentication products in the Asia Pacific markets.
DSS International, Inc. will be led by Mr. Heng Fai Ambrose Chan, currently a DSS director, and Executive Chairman of Singapore eDevelopment Ltd. ("SeD") which is listed on the Singapore Exchange Catalist. Mr. Chan, who is involved in industries such as Information Technology, Biomedical Products, Health and Wellness, and Food and Beverage, became familiar with DSS and its authentication technology when he was seeking brand protection solutions for a SeD subsidiary.
Since his introduction to the Company in mid-2016, Mr. Chan has since become a Board Member of DSS and has invested $600,000 through one of his companies, Heng Fai Holdings Limited. In addition, DSS and Hengfai Business Development Pte Ltd. ("HBD") entered into a Securities Exchange Agreement whereby DSS received shares of SeD in exchange for shares it has issued to HBD; representing a commitment by each of DSS and SeD to strengthen and build the business relationship, share resources, and provide beneficial expertise in the growth and development of DSS International Inc.
"Entry into the Asian Pacific market provides DSS with a tremendous opportunity to build market share for our AuthentiGuard anti-counterfeiting, authentication and brand protection technologies," stated Jeff Ronaldi, CEO of DSS. "Our strategic partnership with SeD will provide DSS with immediate presence and experience in Asia, as well as efficient access to several targeted industries in desperate need of product and brand protection," added Ronaldi.
"Counterfeit products is a multi-billion-dollar problem which is impacting online and offline commerce. I will leverage on my business network to open up new markets with particular focus on Greater China. Beyond geographical expansion, I believe DSS has vast potential for applications in new verticals. I will look on these opportunities to increase shareholder value for DSS," said Mr. Chan.
A recent report released by the US Chamber of Commerce's Global IP Centre ("GIPC") indicates that "as much of 86% of the world's $461 billion in global trade-related counterfeit goods originate from China. While there have been positive developments on the IP enforcement front in China over the past few years, the GIPC figures stand as a stark reminder that there is still a massive - and perhaps insurmountable - problem with counterfeiting in the country". In addition, according to a 2017 Business News report, within the Asian Pacific market, the anti-counterfeit packaging market in food and pharmaceuticals alone is expected to grow at a compound annual growth rate of 20.4% from 2016-2025. This surge in counterfeiting growth observed in the Asian countries is majorly attributed to its fast-growing retail markets.
Top Five Economies of Origin by Estimated Value of Seized Counterfeit Products by U.S., EU, and Japanese Customs Authorities, 2010-2014 (average)
|Economy of Origin||Estimated Value||Economy of Origin||Estimated Value||Economy of Origin||Estimated Value|
|China||$953.2 million||China||EUR 467.5 million||China||$100 million|
|Hong Kong||$301.4 million||Hong Kong||EUR 70.2 million||Hong Kong||$14.6 million|
|India||$11.1 million||India||EUR 50.6 million||India||$6.2 million|
|Canada||$8.3 million||Canada||EUR 29.9 million||Canada||$3 million|
|Singapore||$5.6 million||Singapore||EUR 18.7 million||Singapore||$1.2 million|
Sources: U.S. Customs and Border Protection; European Commission Taxation
and Customs Union; Japanese customs;58 analysis: Pugatch Consilium
These, and other reports, indicate that the value of goods seized is only a small percentage of the total $461 billion in global trade-related counterfeiting. For a comprehensive overview of the global counterfeiting epidemic, refer to the GIPC report -- 'Measuring the Magnitude of Global Counterfeiting'.
In support of its international expansion, the Company intends to provide DSS International Inc. with a working capital investment of $1,000,000 to be used primarily to establish offices in Hong Kong, Singapore and the U.S., as needed, for employment of staff, and for the acquisition of equipment and other proper business expenses.
For more information, please refer to the Company's 8-K filings which can be found in the SEC Filings section of the Company's web page, www.dsssecure.com or at the Securities and Exchange Commission web site, www.sec.gov.
ABOUT SINGAPORE EDEVELOPMENT, LTD.
Singapore eDevelopment Limited ("SeD") was incorporated in September 2009, and has been listed on the Catalist board of the Singapore Exchange since July 2010. SeD is dedicated to bringing together businesses with the potential to generate vast benefit to the society. SeD underwent a major restructuring exercise in August 2014 and unveiled its new corporate identity under the leadership of Mr. Chan Heng Fai, who was appointed as Executive Director and Chief Executive Officer in the same year. Leveraging on the senior management's expertise and robust network, SeD is pursuing corporate advancements through four business pillars: (i) international property development and a suite of related services; (ii) information technology; (iii) development, research, testing, manufacturing, licensing and distribution of biomedical products; and (iv) investment activities. As a part of its biomedical business, SeD intends to introduce medical solutions, health solutions and global lite food & beverage in 2017. For more information, visit: http://sed.com.sg/home
ABOUT DOCUMENT SECURITY SYSTEMS, INC.
For over 15 years, Document Security Systems, Inc. ("DSS") has protected corporations, financial institutions, and governments from sophisticated and costly fraud. DSS' innovative anti-counterfeit, authentication, and brand protection solutions are deployed to prevent attacks which threaten products, digital presence, financial instruments, and identification. AuthentiGuard®, the company's flagship product, provides authentication capability through a smartphone application so businesses can empower a wide range of employees, supply chain personnel, and consumers to track their brands and verify authenticity.
The Company's wholly-owned subsidiary, DSS Plastics Group (DSSPG), acquired by DSS in 2006, has been manufacturing advanced plastic cards and related products for businesses worldwide for over 40 years. Utilizing DSS core anti-fraud technologies, DSSPG's expertise includes security printing, plastic card manufacturing, Enhanced Tribal Cards, RFID products, SwiftColor InkJet Plastic Cards, Secure Card Designs and Polycarbonate card production. DSSPG's vast experience and knowledge has made them a leader in the plastic card industry, and has resulted in an impressive client list consisting of numerous governmental agencies, social media giants, global technology firms, and U.S. professional sports organizations and events.
Forward-looking statements that may be contained in this press release, including, without limitation, statements related to the Company's plans, strategies, objectives, expectations, potential value, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act and contain words such as "believes," "anticipates," "expects," "plans," "intends" and similar words and phrases. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results projected in any forward-looking statement. In addition to the factors specifically noted in the forward-looking statements, other important factors, risks and uncertainties that could result in those differences include, but are not limited to, our ability to continue the growth in sales of AuthentiGuard and manage our expenses, as well as those risks disclosed in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission on March 28, 2017. Forward-looking statements that may be contained in this press release are being made as of the date of its release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.
Document Security Systems, Inc.
Tel: (585) 232-5440
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