DSS shares drop 20.14% premarket after announcing public offering amid financial distress and debt challenges.

DSS, Inc. fell 20.14% in premarket trading following the announcement of a proposed public offering to raise capital for general corporate and working capital needs. The offering, managed by Aegis Capital Corp. on a firm commitment basis, signals a capital-raising move amid the company’s already weak financial health—highlighted by a high debt-to-equity ratio (3.99), negative operating margin (-73.12%), and a distress-level Altman Z-Score (-6.6). The news triggered investor concerns over equity dilution and the company’s ability to manage its liquidity challenges, exacerbating the sell-off. The offering aligns with DSS’s recurring spinoff strategy but has been met with skepticism due to its history of declining revenue and profitability, prompting a sharp premarket decline.