Dataram Corp (NASDAQ:DRAM)
Dataram Corp (NASDAQ:DRAM) has announced a 1:4 reverse split. The reverse stock split was effected by The NASDAQ Capital Market on Monday, May 8, 2017. The reverse stock split did not affect the company’s par value as well as other terms of common stock. The company’s common stock started trading on a split-adjusted basis on Monday, May 8, 2017 on The NASDAQ Capital Market.
The aim of the reverse stock split is to raise the trading price of each of the company’s share of common stock to over $4.00. The company initiated the reverse split to fulfill one of the requirements of a merger with U.S. Gold Corp. Dataram’s common stock will continue trading under the symbol “DRAM,” on The NASDAQ Capital Market. The stock’s new CUSIP number after the stock split is 238108 500.
The company’s shareholders, during a special shareholders meeting held on March 30, 2017, voted to authorize the Board of Directors to implement a reserve stock split of the issued as well as outstanding stock by a ratio of between 1:2 and 1:10. The Board of Director set the ratio at 1-for-4.
Upon implementation of the split, every four shares of the company’s common stock were automatically changed to one share of common stock without affecting the par share value. The reverse split is aimed at reducing the company’s outstanding common stock from around 4.8 million to around 1.2 million. Additionally, all of the company’s outstanding shares of common stock will be converted to preferred stock. The reverse stock split did not affect the number of shares of common and preferred stock.
Following the reverse stock split, the company will not issue any fractional shares and shareholders who would be entitled to a fractional share will be offered a cash payment equal to the stock’s closing sale price of the reported day. Equity Stock Transfer LLC, Dataram’s transfer agent is also acting as the exchange agent of the stock split. The agent will provide instructions and advice to stockholders on the process of exchanging their shares.
Dataram specializes in the production of memory products as well as provision of performance solutions aimed at increasing performance of servers, desktops, workstations and laptops produced by leading producers like Oracle, Lenovo, IBM, HP, Fujitsu, Cisco and Dell. The company’s products are supplied globally to distributors, OEMs, value-added resellers as well as end-users.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.