SARASOTA, Fla., Nov. 28, 2014 /PRNewswire/ -- xG Technology, Inc. ("xG" or the "Company") ( Nasdaq: XGTI, XGTIW), a developer of wireless communications and spectrum sharing technologies announced today the execution of a stock purchase agreement for the sale of an aggregate of $1,331,500 of common stock with Lincoln Park Capital Fund, LLC ("LPC"), a Chicago-based institutional investor, certain of the Company's officers and directors, (the "Affiliate Purchasers") and certain other investors (the "Other Investors"). Under the purchase agreement, dated November 25, 2014, xG sold $625,000 worth of its common stock to LPC at a price of $1.25 per share, $337,500 worth of its common stock to the Affiliate Purchasers at a price of $1.37 per share and $369,500 worth of its common stock to the Other Investors at a price of $1.25 per share pursuant to the Company's current shelf registration statement. No warrants were issued in connection with the transaction.
The shares of common stock are being sold to LPC, the Affiliate Purchasers and the Other Investors pursuant to the Company's effective shelf registration statement on Form S-3 (Registration No. 333-197820), filed with the Securities and Exchange Commission in accordance with the provisions of the Securities Act of 1933, as amended, and declared effective on August 21, 2014.
Additional details regarding the financing are included in a Current Report on Form 8-K filed on November 26, 2014 by xG with the Securities and Exchange Commission.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About xG Technology
xG Technology has created a broad portfolio of intellectual property that makes wireless networks more intelligent, accessible, affordable and reliable. The company has created xMax, a patented all-IP cognitive radio technology that enables 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. xG's goal is to help wireless broadband networks deliver voice, video and data services to fixed and mobile users. The xMax cognitive radio system 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. xG offers solutions for numerous industries worldwide, including urban and rural wireless broadband, utilities, defense, emergency response and public safety.
Based in Sarasota, Florida, xG has 60 U.S. and over 130 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.
About Lincoln Park Capital Fund, LLC ("LPC")
LPC is an institutional investor headquartered in Chicago, Illinois. LPC's experienced professionals manage a portfolio of investments in public and private entities. These investments are in a wide range of companies and industries emphasizing life sciences, specialty financing, energy and technology. LPC's investments range from multiyear financial commitments to fund growth to special situation financings to long-term strategic capital, offering companies certainty, flexibility and consistency.
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:
Investor and Analyst Relations
Jody Burfening/Carolyn Capaccio
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/xg-technology-inc-announces-purchase-agreement-for-1331500-with-lincoln-park-capital-fund-llc-and-certain-officers-and-directors-300002120.html
SOURCE xG Technology, Inc.