Dataram Closes Sale of Subordinated Secured Convertible Bridge Notes to Fund Further Sales Growth and Software Development

  Dataram Closes Sale of Subordinated Secured Convertible Bridge Notes to Fund
  Further Sales Growth and Software Development

Business Wire

PRINCETON, N.J. -- July 18, 2014

Dataram Corporation (NASDAQ:DRAM) On July 15, 2014, Dataram (the “Company”)
entered into a Subordinated Secured Convertible Bridge Note and Warrant
Purchase Agreement (the “Purchase Agreement”) governing the issuance of up to
$750,000 aggregate principal amount of Subordinated Secured Convertible Bridge
Notes (the “Bridge Notes”) and Warrants (the “Warrants”). The Bridge Notes and
Warrants were issued on July 15, 2014. The Company issued $600,000 aggregate
principal amount of the Bridge Notes to certain institutional investors
(“Institutional Investors”) and $150,000 aggregate principal amount of the
Bridge Notes to certain members of management, officers and directors of the
Company (“Management”).

The Bridge Notes, which mature on October 15, 2014 (subject to a three-month
extension at the option of the holders), are convertible into shares of the
Company’s common stock. The initial conversion price for Institutional
Investors is $2.50 per share, and the initial conversion price for Management
is equal to the closing price of the Company’s common stock on the closing
date of the Purchase Agreement, $2.94. The Bridge Notes are secured
obligations of the Company and will bear interest at a rate of 8% per year.

The Warrants are exercisable for five years after the closing date of the
Purchase Agreement. For each $1,000 of principal amount of Bridge Notes, the
holder will receive 1,200 Warrants to purchase the Company’s common stock.
Each holder will be entitled to exercise one-third of all warrants received at
an exercise price of $3.00, one-third of all warrants received at an exercise
price of $3.50, and one-third of all warrants received at an exercise price
that is equal to the closing price on the closing date of the Purchase
Agreement, $2.94.

Pursuant to the terms of the Purchase Agreement, the Company has agreed to
register the shares underlying the Bridge Notes and the Warrants.

John H. Freeman, Dataram’s president and CEO commented, “The Company continues
to raise capital to strengthen its balance sheet, purchase inventory and more
quickly fulfill large orders.”

ABOUT DATARAM CORPORATION

Founded in 1967, Dataram is a worldwide leader in the manufacture of
high-quality computer memory and software products. Our products and services
deliver IT infrastructure optimization, dramatically increase application
performance and deliver substantial cost savings. Dataram solutions are
deployed in 70 Fortune 100 companies and in mission-critical government and
defense applications around the world. For more information about Dataram,
visit www.dataram.com.

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. 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 and other
factors described in the Company's most recent Annual Report on Form 10-K,
filed with the Securities and Exchange Commission, which can be reviewed at
http://www.sec.gov.

.

Contact:

Dataram
Marc P. Palker, 609-799-0071
Chief Financial Officer
info@dataram.com
 
Press spacebar to pause and continue. Press esc to stop.