xG may price sale of 2,785,640 units and 4,178,460 warrants at $1.55

Company registers up to $16.19 million of common stock for offering

By Devika Patel

Knoxville, Tenn., Aug. 13 – xG Technology, Inc. will sell 1,012,340 class A units, 1,773,300 class B units, 1,518,510 series C warrants and 2,659,950 series D warrants in its public offering, according to a Form S-1/A filed Thursday with the Securities and Exchange Commission. The company has registered up to $16,191,534 of underlying stock for the deal, which was announced on May 5.

Each class A unit consists of one common share and a half-share series A warrant. Each class B unit consists of one prefunded series B warrant exercisable for one common share and a half-share series A warrant. Each series C warrant is exercisable for one class A unit. Each series D warrant is exercisable for one class B unit.

The class A and class B units will be sold at an assumed price of $1.55, the closing price of the company’s common stock on Aug. 11 (OTCBB: XGTI). The series C and series D warrants are being offered at $0.01 per warrant.

The whole series A warrants will be exercisable at the per-unit price for five years. The series B warrants are exercisable at $0.01. The series C and series D warrants are exercisable at the per-unit price.

Roth Capital Partners is the bookrunner.

Proceeds will be used for general corporate purposes, including working capital, product development, marketing, internal sales organization expansion, development of sales channels, setting up contract manufacturing production lines and other expenditures, including acquisitions and investments.

Based in Sarasota, Fla., xG Technology is a developer of technologies that enhance wired and wireless communication.

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