xG Technology, Inc. (Nasdaq: XGTI, XGTIW) said it has closed the previously announced underwritten public offering of its Class A Units, Class B Units, Series C Warrants and Series D Warrants.
xG offered 2,550,000 Class A Units, at a price of USD1.00 per Class A Unit, each of which consists of one share of its common stock and 0.5 of a Series A Warrant to purchase one share of its common stock at an exercise price of USD1.00 per warrant, (ii) 2,450,000 Class B Units, at a price of USD0.99 per Class B Unit, each of which consists of one pre-funded Series B Warrant to purchase one share of its common stock and 0.5 of a Series A Warrant, (iii) 2,550,000 Series C Warrants, at a price of USD0.01 per Series C Warrant, which is deemed to be included in the USD1.00 price per Class A Unit, each to purchase one additional Class A Unit at an exercise price of USD1.00, and (iv) 4,950,000 Series D Warrants, at a price of USD0.01 per Series D Warrant, which is deemed to be included in the USD0.99 price per Class B Unit, each to purchase one additional Class B Unit at an exercise price of USD0.99.
xG received approximately USD5,000,000 in gross proceeds from the offering, before underwriting discounts and commissions and offering expenses payable by the company.
xG said it intends to use the net proceeds from the offering for general corporate purposes, including working capital, product development, partial reduction of liabilities, marketing activities, expanding its internal sales organization and further developing sales channels, funding the set-up of contract manufacturing production lines and other capital expenditures.
Roth Capital Partners acted as sole book-running manager for the offering.
xG has created a broad portfolio of intellectual property that makes wireless networks more intelligent, accessible, affordable and reliable. Based in Sarasota, Florida, the company has 50 US and over 100 international patents and pending patent applications.