By David Willey, Benzinga
DSS, Inc. (NYSE American: DSS) is finalizing the long-anticipated spin-off of its biotech subsidiary, Impact Biomedical, Inc. The spin-off will reward DSS investors with shares from Impact, and it will come after an Impact subsidiary signed a licensing agreement with a pharmaceutical company.
Investors who own DSS shares as of June 30 will receive four (4) Impact Biomedical shares for every one of their DSS shares, as part of the spin-off.
The spin-off is coming after Impact Biomedical’s subsidiary, Global BioLife, Inc., signed a licensing agreement with ProPhase BioPharma, Inc., a subsidiary of ProPhase Labs, Inc. (NASDAQ: PRPH) for Global BioLife’s Linebacker portfolio of treatments, LB-1 and LB-2. Prophase Labs is a growing diagnostic, genomics and biotech company with a diversified portfolio.
Impact’s Success In Biotech
Linebacker is a platform of small molecule X-bonded polyphenols, and LB-1 and LB-2 are treatments that are expected to be effective in crossing the blood-brain barrier. Linebacker could prove to be a treatment with a range of applications, including in neurology, anti-inflammatory and oncology diseases.
With this licensing agreement, ProPhase will continue developing Linebacker as a potential therapeutic. In fact, on June 1, ProPhase announced that “Harvard scientists at the Dana Farber Cancer Institute, in two separate lung and colon cancer clonogenic models, have successfully demonstrated Linebacker’s ability to inhibit cancer cell growth, an exciting development for the polyphenol compound.” The company already believes that LB-1 may be an effective therapy for hard-to-treat cancers and other types of cancer.
Frank D. Heuszel, CEO of DSS, commented on the agreement, “The execution of this licensing agreement represents a significant milestone for Impact BioMedical and its robust portfolio of development opportunities. This is the second license agreement with ProPhase this year, and we are excited to deepen our work together as they apply their nearly three decades of experience enhancing the health of the public.”
Ted Karkus, ProPhase Lab's CEO, commented on the partnership in July 2022, “We believe the Linebacker platform has multi-billion-dollar potential in oncology as well as significant potential in other fields.”
4 Shares In Spin-Off For Every DSS Share
DSS could offer a potentially lucrative opportunity to investors looking to diversify their portfolios. This is not the only spin-off opportunity that DSS will offer, as the company operates nine divisions and 40 subsidiaries.
DSS has plans to spin off two other of its successful subsidiaries later in 2023. These are the medical real estate investment trust, AAMI/AMRE, as well as the financial services company, American Pacific Bancorp.
By incubating and eventually spinning off companies, DSS develops companies like Impact Biomedical to increase shareholder value. All shareholders of record on June 30, will receive four (4) shares in Impact Biomedical to be distributed on July 14.
Learn more about what DSS, Inc. is doing to support and spinoff businesses.
DSS is a multinational company operating businesses within nine divisions: Product Packaging, Biotechnology, Direct Marketing, Commercial Lending, Securities and Investment Management, Alternative Trading, Digital Transformation, Secure Living, and Alternative Energy. DSS strategically acquires and develops assets to enrich the value of its shareholders through calculated IPO spinoffs and a parametric share distribution strategy. Since 2019, under the guidance of new leadership, DSS has built the necessary foundation for achievable growth through the formation of a diversified portfolio of companies positioned to drive profitability in multiple high growth sectors. These companies offer innovative, flexible, and real-world solutions that not only provide mutual benefits for businesses and their customers, but also create sustainable value and opportunity for transformation.
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