xG Technology CEO and Executive Board Chairman George Schmitt Converts Loan into xG Common Stock
Increases Investment Stake in Support of Company's Long-Term Prospects
SARASOTA, Fla., Oct. 12, 2015 /PRNewswire/ -- xG Technology, Inc. ("xG" or the "Company") (Nasdaq: XGTI, XGTIW), a developer of wireless communications and spectrum sharing technologies, announced today that George Schmitt, Chief Executive Officer and Chairman of the Board of Directors of xG has agreed to convert $500,000 of existing loans due from the Company into shares of the Company's common stock. The loans will be converted at a price of $0.56 per share, the high bid price of the Company's common stock on October 6, 2015, the day prior to the conversion, as reported by the Nasdaq Capital Market.
The balance of the loans due from the company to Mr. Schmitt remain senior secured and rank pari passu with other existing senior secured debt of the Company.
Mr. Schmitt also indicated his intention to purchase modest quantities of additional shares of xG common stock from time to time through open market transactions. The timing and amount of such purchase transactions will depend on market conditions and corporate and regulatory considerations.
Mr. Schmitt said, "I believe xG Technology represents an undervalued investment opportunity at its current market price. My wife and I decided to convert the debt we hold from xG into equity in the Company because of our steadfast conviction in xG's business strategy, its technology foundation, and our continued confidence in its prospects for substantial growth and execution on its plan." He concluded, "xG continues to have significant engagement with potential buyers from markets including emergency management, public safety, national defense, rural telecom and others where our cognitive radio wireless solutions deliver critically-needed capabilities."
About xG Technology, Inc.
Founded in 2002, xG Technology has created a broad portfolio of intellectual property that makes wireless networks more intelligent, accessible, affordable and reliable. The company is the developer of xMax, a patented all-IP cognitive radio network system that enables secure, robust mobile broadband communications for private, consumer and government networks. xMax can solve the crisis facing the wireless industry caused by data-hungry devices and applications that are straining network capacity. It eliminates the need to acquire scarce and expensive licensed spectrum, thus lowering the total cost of ownership for wireless broadband access.
The xMax system delivers always-available voice, video and data services to both fixed and mobile users, and is interoperable with existing cellular and dedicated networks without being dependent on them. xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). These and other technologies make xMax ideal for wide area, as well as rapid emergency communication deployment in unpredictable environments and during fluid situations. xG offers solutions for numerous industries worldwide, including emergency response and public safety, military, urban and rural wireless broadband, utilities, and critical infrastructure.
Based in Sarasota, Florida, xG has over 50 U.S. and over 100 international patents and pending patent applications. xG is a publicly traded company listed on the NASDAQ Capital Market where xG common stock is traded under the symbol XGTI and xG warrants are traded under the symbol XGTIW. For more information, please visit www.xgtechnology.com.
Cautionary Statement Regarding Forward Looking Statements
Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words "anticipate," "believe," "estimate," "upcoming," "plan," "target", "intend" and "expect" and similar expressions, as they relate to xG Technology, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.
For More Information:
Media Relations
Daniel Carpini
xG Technology
[email protected]
(941) 953-9035
Investor and Analyst Relations
James Woodyatt
xG Technology
[email protected]
(954) 572-0395
Jody Burfening/Carolyn Capaccio
LHA
[email protected]
(212) 838-3777
SOURCE xG Technology, Inc.
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