Wireless communications provider xG Technology, Inc. (Nasdaq: XGTI) has priced an underwritten public offering with expected total gross proceeds of approximately USD10 million before deducting underwriting discounts and commissions and other offering expenses, the company said.
The securities offered consist of 3,800,000 Class A Units, with each Class A Unit consisting of one share of the company´s common stock and one immediately exercisable five-year warrant to purchase one and one quarter 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 shares of the company´s common stock at USD2.00 per share and immediately exercisable five-year warrants to purchase one and one quarter shares of common stock for each share of common stock into which the Series E Convertible Preferred Stock is convertible, 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 underwriters have been granted 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 offering is expected to close on or about December 27, 2016, subject to customary closing conditions.
The net proceeds of the offering will be used to fund a portion of xG´s previously announced acquisition of Vislink Communications Systems or, if the acquisition is not consummated, for general corporate purposes.
Aegis Capital Corp. is acting as the 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. Based in Sarasota, Florida, xG has 100 patents and pending patent applications.
Related Articles