Dataram Reaches A Deal to Acquire US Gold Corp

Dataram Corporation DRAM revealed that the companies have reached a definitive agreement under which Dataram will acquire all of the outstanding shares of US Gold Corp and USGC subsidiaries. According to the company, US Gold Corp. controls the Copper King Project, an advanced stage gold exploration project based in Wyoming that owns certain mining leases and other mineral rights in the Silver Crown Mining District of southeast Wyoming. Dataram said that under the agreement, it would buy USGC and its subsidiaries, subject to certain terms and conditions. The company added that consideration for the acquisition consisted of Dataram common and preferred shares. The company's Chairman and CEO, Dave Moylan, commented, "This is a tremendous opportunity for our stockholders. We have been actively looking for diversification opportunities for more than a year and our entry into the natural resources sector is intended to diversify risks and unlock value for our stockholders. Our executive management team sees this acquisition as an economically viable and exciting project given the overall landscape and market opportunity within natural resources." He added, "While the global memory business is continuing to experience significant average selling price declines and strong margin pressure, we have refocused the core business to operate in this environment. After the acquisition concludes, Dataram will consider all options to maximize its memory products and performance solutions business in the best interest of the pre-acquisition stockholders. We further believe the acquisition of US Gold will generate strong capital appreciation." Dataram said that the transaction is subject to customary closing conditions including regulatory approval and stockholder approval, and is expected to close by the end of the second quarter of the fiscal year 2017. Shares of the company traded 19.44 percent down on Tuesday.