NEW YORK (TheStreet) -- Shares of Dataram (DRAM) are plummeting by 30.92% to 99.5 cents on heavy trading volume late Tuesday afternoon, as the company will acquire all outstanding shares of gold exploration and development company U.S. Gold Corp and its subsidiaries.
The Net Present Value of U.S. Gold Corp. assets is $160 million.
Dataram plans to file with the SEC and mail its shareholders a proxy statement in connection with the deal.
"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," CEO Dave Moylan said in a statement.
Dataram is a Princeton, NJ-based manufacturer of memory products and provider of performance solutions.
Additionally, Mark Groussman disclosed a 6.9% passive stake in Dataram as of June 7, according to an SEC filing cited by Reuters.
About 2.42 million shares of Dataram have been traded so far today vs. its average trading volume of roughly 15,623 shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D-.
Dataram's weaknesses include its poor profit margins and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: DRAM
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.