xG Technology closes USD10m public offering

Sarasota, Florida-based wireless communications provider xG Technology, Inc. (Nasdaq: XGTI) has closed its public underwritten offering of securities, with gross proceeds of USD10 million before deducting underwriting discounts and commissions and other offering expenses, the company said.

The company sold to the underwriters 3,800,000 Class A Units, each consisting of one share of the common stock and one and one quarter immediately exercisable five-year warrant, each whole warrant to purchase one share of common stock with a warrant exercise price of USD2.00, and 2,400 Class B Units, with each Class B Unit consisting of one share of the company´s Series E Convertible Preferred Stock with a stated value of USD1,000 and convertible into 500 shares of the company´s common stock at USD2.00 per share, together with an immediately exercisable five-year warrants to purchase 625 shares of common stock, with a warrant exercise price of USD2.00.

The Class A Units were priced at USD2.00. The Class B Units were priced at USD1,000. The company also granted the underwriters a 45-day option to purchase up to an aggregate of an additional 15% of the securities sold in the offering to cover over-allotments, if any.

The company plans to use the net proceeds of the offering to fund a portion of its acquisition of Vislink Communications Systems or, if the acquisition is not consummated, for general corporate purposes.

Aegis Capital Corp. acted as sole book-running manager for the offering.

Founded in 2002, xG Technology has developed technologies that enable always-available, always-connected and always-secure voice, broadband data and video communications.