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19 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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