PRINCETON, N.J., Aug. 8, 2016 /PRNewswire/ -- Dataram Corporation
(NASDAQ: DRAM), an independent manufacturer of memory products and
provider of performance solutions, today announced that on
August 3, 2016, it executed
definitive purchase agreements with certain accredited investors,
pursuant to which the Company agreed to sell 3,699 shares of its
Series D Preferred Stock (the "Series D Stock") at a price of
$136.00 per share. Each
share of Series D Preferred Stock is convertible into 100 shares of
common stock at a conversion price of $1.36 per share. The shares were priced
based on market close on August 2,
2016. The Company closed on the sale of the Series D
Preferred Stock on August 4, 2016
with gross proceeds to the Company of approximately $503,000.
The Series D Stock is convertible into common shares at the
ratio of 100 common shares for every Series D share. The
shares are eligible for a special onetime dividend. No
warrants were issued as part of the transaction.
"This capital provides us with additional resources to expand
rapidly into new global markets as well as help execute on the
recently announced acquisition of U.S. Gold.
"It is a unique and valuable opportunity to work with investors
who support the Company and take a long-term, strategic approach in
the investment in Dataram" said Dave
Moylan, Dataram Chairman and CEO. "The continued support
from our existing and new investors is greatly appreciated as they
provide us the greatest strategic latitude for the business as we
continue to optimize during this time of transformation."
The proceeds will be used to invest in international growth and
for fees incurred in connection with the acquisition of U.S.
Gold. Over the last 12 months, Dataram's international
revenue increased approximately 10%. The Company continues to
seek global expansion and actively pursues new markets overseas.
The U.S. Gold transaction, announced in June
2016, is expected to close later this year, subject to usual
and customary conditions, including the approval of our
shareholders.
About Dataram Corporation
Dataram is an independent
manufacturer of memory products and provider of performance
solutions that increase the performance and extend the useful life
of servers, workstations, desktops and laptops sold by leading
manufacturers such as Dell, Cisco, Fujitsu, HP, IBM, Lenovo and
Oracle. Dataram's memory products and solutions are sold worldwide
to OEMs, distributors, value-added resellers and end users.
Additionally, Dataram manufactures and markets a line of Intel
Approved memory products for sale to manufacturers and assemblers
of embedded and original equipment. 70 Fortune 100 companies are
powered by Dataram. Founded in 1967, the Company is a US based
manufacturer, with presence in the United
States, Europe and
Asia. For more information about
Dataram, visit www.dataram.com.
Safe Harbor
The information provided in this press
release may include forward-looking statements relating to future
events, such as the development of new products, pricing and
availability of raw materials or the future financial performance
of the Company, and the pending acquisition of US Gold Corp, and
any anticipated benefits of the merger, and the success of US Gold
with respect to any of its exploration activities. Actual
results may differ from such projections and are subject to certain
risks including, without limitation, risks arising from: changes in
the price of memory chips, changes in the demand for memory
systems, increased competition in the memory systems industry,
order cancellations, delays in developing and commercializing new
products, risks with respect to US Gold faced by junior exploration
companies generally engaged in pre-production activities, and other
factors described in the Company's most recent Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on
Form 8-K, including the Risk Factors with respect to
U.S. Gold contained in the Current Report on Form 8-K filed on
June 13, 2016, filed with the
Securities and Exchange Commission, which can be reviewed
at www.sec.gov. The Company has based
these forward-looking statements on its current expectations and
assumptions about future events. While management considers
these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive,
regulatory, and other risks, contingencies, and uncertainties, most
of which are difficult to predict and many of which are beyond the
Company's control. The Company does not assume any
obligations to update any of these forward-looking
statements.
For additional information, please
contact:
Robert Haag
Managing Director
IRTH Communications
866-976-4784
DRAM@irthcommunications.com
Dataram Contact:
Jeffrey Goldenbaum
Director, Marketing
609-799-0071
info@dataram.com
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SOURCE Dataram Corporation