xG Technology announces $3.2M registered direct offering, private placement
xG Technology announced that it has entered into definitive agreements with institutional investors to purchase an aggregate of approximately $3.2M of shares of common stock in a registered direct offering and common stock purchase warrants in a concurrent private placement. The shares of common stock will be priced at $2.05. The warrants sold in the private placement will be exercisable immediately following the date of issuance, will expire on the fifth anniversary of the date they become exercisable, and have an exercise price of $2.50. At closing, xG anticipates that it will issue a total of 1,560,978 registered shares of common stock and unregistered warrants to purchase up to 780,489 shares of common stock. The offerings are expected to yield total gross proceeds of approximately $3.2M, before deducting placement agent fees and other estimated offering expenses. The company intends to use the net proceeds from the offering for working capital and other general corporate purposes. The closing of the offerings is expected to take place on or about August 18, subject to the satisfaction of customary closing conditions. Aegis Capital Corp. is acting as the sole placement agent in connection with the offering. Maxim Group LLC is serving as a financial advisor to xG.