Dataram (DRAM) Announces Finalization of U.S. Gold Corp. Acquisition

November 29, 2016 8:46 AM EST

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Dataram Corporation (Nasdaq: DRAM) announced that it had finalized and filed the third and final amendment to its definitive agreement with U.S. Gold Corp. ("USGC"), a U.S. focused gold exploration and development company. Under the agreement, Dataram will acquire all of the outstanding shares of U.S. Gold Corp. and USGC subsidiaries. The original agreement was entered into in June 2016 and has been subsequently amended to reflect the successful capital raise by U.S. Gold, the Series D issuance by Dataram and also, the impact of the reverse split. The agreement was filed with the Securities and Exchange Commission (SEC) and can be reviewed at www.sec.gov.

The Companies are working to finalize the preliminary S-4/Proxy, which they intend to file with NASDAQ in December 2016. Once the NASDAQ review is completed, the Dataram will file a definitive S-4/Proxy and will formally present the merger and associated consideration to the shareholders in early 2017 review and approval.

U.S. Gold Corp. controls the Copper King Project, an advanced stage gold exploration project based in Wyoming, which owns certain mining leases and other mineral rights in the Silver Crown Mining District of southeast Wyoming, and has also acquired certain mining claims related to a gold exploration project in Eureka County, Nevada known as the "Keystone Project."

"While there are always risks, and critical activities can sometimes take longer than planned, Dataram remains fully committed to acquiring U.S. Gold as we remain confident that this is a tremendous opportunity for our shareholders," stated Mr. Dave Moylan, Dataram's Chairman and Chief Executive Officer (CEO). "With any merger or acquisition activity, there are multiple dependencies that each company must address. U.S. Gold recently completed an extremely successful capital raise intended to directly support exploration activities for both the Copper King and Keystone projects. The raise helps ensure these exploration efforts are fully funded for several years. The strong participation in the raise reaffirms our belief that our entry into the natural resources sector, which is intended to diversify risk, will unlock value for our shareholders. It also reaffirms the acquisition as an economically viable and exciting project given the overall landscape and market opportunity within natural resources. Additionally, the memory market has been undergoing a sharp increase in DRAM prices since mid-summer, with the Average Selling Price (ASP) of our memory products rising significantly since the July/August timeframe. In conjunction with the acquisition, we remain focused on making strategic purchases of DRAM components and modules to provide competitive pricing of high quality memory products in the market."

"We remain enthusiastic about the opportunities created through this acquisition and believe the combined companies will generate significant value for our shareholders," comments Mr. Edward Karr, CEO and Director of U.S. Gold Corp. "With a strong capital raise completed, we are quickly moving forward on advancing both of our development and exploration projects."

The transaction is subject to customary closing conditions including regulatory approval and Dataram shareholder approval, and is expected to close by the end of Q1 CY 2017. ROTH Capital Partners, LLC is acting as the financial advisor to Dataram, and Windels Marx Lane and Mittendorf LLP and Sichenzia Ross Ference Kesner LLP are serving as legal advisors to Dataram. Laxague Law, Inc. is serving as legal advisor to U.S. Gold.

Dataram's common stock trades on The NASDAQ Capital Market under the symbol "DRAM."



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