Document Security Systems (DSS) has entered into a subscription agreement for a $40m investment in bank holding company American Pacific Bancorp (APB).
APB will issue 6,666,700 shares of its common stock to DSS at $6 apiece.
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Under the agreement, DSS purchased over 50% of APB’s outstanding shares of common stock. This made DSS the majority-owner of APB.
“As majority owner of APB, we plan to quickly deploy this capital to build a high-quality portfolio of B2B loans and expect to have the entire $40 million generating interest for us before the end of 2021,” DSS COO Jason Grady said.
Commenting on the transaction, DSS CEO Frank Heuszel said: “APB has assembled a strong pipeline of diversified loans from home mortgages, licensed medical real estate financing, district bonds, SME loans, convertible loans and profit participation loans.
“This investment represents a strong validation of APB’s business model, and this fresh injection of funds should significantly improve APB’s ability to execute its plans on an expedited basis.”
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By GlobalDataDSS runs business segments in blockchain security, direct marketing, healthcare, consumer packaging, real estate, renewable energy, as well as securitised digital assets.
Its model is based on a distribution sharing system in which shareholders get shares in its subsidiaries as DSS spins them out into IPOs.
APB is focused on the lending business and purchasing equity positions of US commercial banks.
