xG Technology Closes on $4M in Private Financing
Wednesday, May 30, 2018 | Comments

xG Technology announced that it completed a private placement of $4 million, before fees and other expenses associated with the transaction, in a principal amount of 6 percent senior secured convertible debentures to institutional investors. The debentures were issued pursuant to a securities purchase agreement and the proceeds will be used primarily for working capital and general corporate purposes.

The senior secured debentures rank senior to the company's existing and future indebtedness and bear interest at 6 percent per annum which shall be paid quarterly in cash on January 1, April 1, July 1, and October 1 beginning on the first such date after issuance.

"Together with recent cost cuts implemented to better cash flow the business, our unlevered balance sheet affords us an opportunity to use debt for our working capital needs going forward,” said Roger Branton, chief financial officer (CFO) and co-founder of xG Technology. “This financing, with a conversion price of $1.00, some 40 percent above our current market price of $0.70, provides a means for us to raise capital in a manner far much less dilutive than an alternative equity offering would otherwise be. We are quite pleased with the continued advancement of xG's business based on our recent changes and as further evidenced by our ability to use debt here as a more efficient part of our capital structure."

A.G.P./Alliance Global Partners, offering securities through Euro Pacific Capital, Inc., acted as sole placement agent for the offering.

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