xG Technology, Inc. (NASDAQ: XGTI, XGTIW) said it has priced a public offering of 2,550,000 Class A Units, at a price of USD1.00 per Class A Unit.
Each unit consists of one share of its common stock and half of a Series A Warrant to purchase one share of its common stock at an exercise price of USD1.00 per warrant; 2,450,000 Class B Units at USD0.99 per, 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; 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 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.
The company expects to receive approximately USD5,000,000 in gross proceeds, before underwriting discounts and commissions and offering expenses payable by the company.
xG said it intends to use the net proceeds from this 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.
The offering is expected to close on August 19, 2015, subject to customary closing conditions.
Roth Capital Partners is acting as sole book-running manager and underwriter for the offering.
Based in Sarasota, Florida, xG has 50 US and over 100 international patents and pending patent applications.