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9 May 2007
xG Technology, Inc.
CLOSES ON US$40M IN
CONVERTIBLE PREFERRED STOCK
xG Technology, Inc. (“xG” or the “Company”)
(AIM: XGT),
the Florida
based communications technology business, is pleased to
announce that it has closed on a capital raise of US$40
million from the sale of Series A Convertible Preferred
Stock (“Convertible Preferred Stock”), details of which were
announced on 19 December 2006.
With a view to minimising dilution to shareholders, the
Company only accepted funding from institutions willing to
close their subscriptions in accordance with the terms of
their subscription agreements for the Convertible Preferred
Stock. The capital raise ensures that the Company’s current
business plan is fully funded.
Rick Mooers, Chairman and CEO commented:
“We are delighted to announce the raising of US$40 million.
Having already earned our first commercial revenues from the
launch of the Company’s xMax technology, in closing the
capital raise at US$40 million we have achieved our two
fundamental objectives: to secure the Company’s future by
financing its business plan in full and to minimize dilution
to existing shareholders.”
-
Ends -
xG
is a registered trade mark of xG Technology, Inc. under US
Trade Mark Registration Number 3039835. xMax is a trademark
of xG Technology, Inc.
Enquiries:
Rick Mooers, Chairman and CEO
Roger Branton, CFO and COO
020 7638 9571
Nigel Daly
Piper Jaffray Ltd.
020 3142 8700
Seb Hoyle
Lucie Holloway
Citigate Dewe Rogerson
020 7638 9571
ABOUT XG
TECHNOLOGY
XG
TECHNOLOGY’S BUSINESS
Based in Florida, USA, xG Technology has developed
innovative technologies that the directors believe have the
potential to change the building blocks, capabilities and
economics of the communications industry. Its patented
technologies can be applied to almost any type of
communication including voice, data or video in wired or
wireless form.
xG Technology is now designing a mobile VoIP (Voice over
Internet Protocol) base station and handset product line.
Branded as xMax, these products are intended to be sold to
regional carriers (internet service providers, competitive
local exchange carriers and entrepreneurial parties) seeking
to deliver mobile Internet Protocol services directly to
consumers without using the incumbent circuit switched or
coaxial cable networks. In time, it is intended that the
xMax product line will expand from mobile VoIP to offer
integrated video and data applications.
MARKET AND COMPETITION
There is a wide variety of wireless technologies in the
marketplace. The Directors believe that the key issue
keeping these technologies from achieving greater success is
the price versus performance of existing options. xMax
changes this price/performance relationship by enabling the
delivery of mobile IP services with less infrastructure
using low-cost and readily available unlicensed radio
spectrum.
xG Technology believes that xMax will be a viable solution
for mobile VoIP for a number of reasons:
-
xMax is an IP solution rather than a circuit
switched solution; this is a prerequisite for handling the
VoIP application;
-
xMax delivers high speed data in the order of Mbps rather
than Kbps, which is essential for supporting large numbers
of subscribers;
-
xMax has a low latency physical layer, resulting in high
network efficiency;
-
xMax’s signal profile also allows for improved
range/coverage and better signal penetration, which is
essential for maintaining call session reliability; and
-
although this feature is not central to the VoIP application
itself, xG Flash Signal’s ability to deliver wireless
signals with far less RF output power than conventional
applications means that wireless VoIP handsets will show
improved battery life over other solutions.
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