This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Document Security Systems, Inc. And Lexington Technology Group, Inc. Sign Definitive Merger Agreement

NEW YORK, Oct. 2, 2012 /PRNewswire/ -- Document Security Systems, Inc. (NYSE MKT: DSS), a leader in anti-counterfeit, authentication, and mass–serialization technologies, and Lexington Technology Group, Inc., a privately-owned company that owns and manages intellectual property assets, today announced they have signed a definitive merger agreement. Upon receipt of shareholder approval from each company, the combined company will continue to be known as Document Security Systems, Inc. and will be led by current Lexington Technology Group CEO Will Rosellini , who will replace Patrick White as CEO of DSS.

The strategic combination with Lexington Technology Group will enable DSS to substantially increase its intellectual property portfolio, add significant talent with a proven record in technological innovation, and be positioned to enhance its revenue through the monetization of the combined company's intellectual property assets.

"The combination of DSS and Lexington will yield a company with both a wealth of intellectual property and industrial assets that we believe can generate revenues from commercial application of these and other technologies," says DSS Chairman Robert Fagenson. "The broadened management team has the depth and experience needed to capitalize on the patent portfolio and a balance sheet with significantly increased working capital to operate the company. We trust our shareholders will share our enthusiasm for the prospects for the combined company going forward."

Lexington Technology Group owns patent assets acquired from Thomas L. Bascom, president of LinkSpace, LLC. These patents are fundamental to important areas of technology that are currently widely in use and growing at significant rates. Lexington Technology Group and LinkSpace, LLC are collaborating through Lexington Technology Group's wholly-owned, Virginia-based subsidiary Bascom Research, which invests both expertise and capital in the development of RFID medical technology. Bascom Research intends to integrate its technology with LinkSpace's enterprise-level software framework and DSS's digital security and RFID technology for electronic health records (EHR) in an effort to improve throughput and patient safety in hospitals.

"We believe this merger will enhance the existing efforts of both entities to broaden revenue generation through the pursuit of market opportunities, and the licensing and protection of our combined intellectual property portfolio," Rosellini says. "We expect to file an IDE with the FDA to begin clinical trials at Virginia-area hospitals with our integrated suite of next-generation patient-centric software in 2013. We expect that this development will be financed with the proceeds from a licensing campaign managed by the patent monetization firm IPNav."

 "We expect that licensing at fair and reasonable rates could provide steady base revenue, while strategic litigation has the potential to produce significant benefits for investors," Rosellini says. "Because our model is supported by stable, ongoing licensing revenue, we won't have to make investment decisions based on quarterly earnings—which we believe could be a tremendous advantage for our investors."

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs