Deal consists of stock, warrants to be placed via agent Aegis Capital
By Susanna Moon
Chicago, May 12 - Dataram Corp. said it entered into a definitive agreement to sell $3.34 million of common stock and warrants to institutional investors in a registered direct offering.
Dataram will sell 1,775,000 of common shares at $1.88 per share and warrants to purchase up to 1,331,250 shares at an exercise price of $2.26 per share.
The price per share is a 0.53% discount to the company's closing price of $1.89 on May 10, and the strike price reflects a 19.58% premium to that price.
The warrants will be exercisable beginning six months from closing and will expire five years later.
Proceeds will be used for working capital and general corporate purposes.
The offering is expected to close on May 17.
Aegis Capital Corp. is the placement agent for the offering.
Dataram is a West Windsor, N.J., developer, manufacturer and marketer of large capacity memory products primarily used in high performance network servers and workstations.
| Issuer: | Dataram Corp.
|
| Issue: | Common shares and warrants
|
| Amount: | $3,337,000
|
| Shares: | 1,775,000
|
| Price: | $1.88
|
| Warrants: | For 1,331,250 shares
|
| Warrant expiration: | 5.5 years after closing
|
| Warrant strike price: | $2.26
|
| Agent: | Aegis Capital Corp.
|
| Pricing date: | May 12
|
| Settlement date: | May 17
|
| Stock symbol: | Nasdaq: DRAM
|
| Stock price: | $1.89 at close May 10
|
| Market capitalization: | $17.05 million
|
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