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06 July 2007
xG Technology, Inc.
Conversion of US$8 Million of Convertible Preferred Equity
to Common Equity in xG Technology, Inc. Subject to
Restrictions on Disposal
xG
Technology, Inc. ("xG" or "the Company"; AIM: XGT), the
Florida based communications technology business, is pleased
to announce that Hichens, Harrison & Co., a Convertible
Preferred Stockholder (holding in aggregate US$8 million of
Series A Convertible Preferred Stock on its own account and
for the account of certain clients), have applied to convert
the Series A Convertible Preferred Stock early into a total
of 1,381,314 shares in the Common Stock of xG. The Company
has agreed to allow this following receipt of the commitment
that the holders will not dispose of any interest in the
Common Shares for a period of one year from conversion (save
in limited circumstances, such as a takeover offer for the
Company), without the prior written consent of the Company,
after consultation and agreement with the Company’s NOMAD
for the time being. In addition, the holders have also
undertaken that they will not dispose of any interest in the
Common Shares for a further period of one year after the
first anniversary of conversion, save in limited
circumstances, except through the Company's broker for the
time being, with a view to maintaining an orderly market in
the Company's shares.
An application will be made for the 1,381,314 new Common
Shares to be admitted to trading on AIM, which is expected
to be effective on July 12, 2007.
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.
- Ends -
Enquiries:
Rick Mooers, Chairman and CEO
Roger Branton, COO and CFO
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 can
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.
As its first vertical application, xG Technology has
designed a mobile VoIP (Voice over Internet Protocol) base
station and handset product line. Branded as xMax, these
products are for use by 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. Future releases of 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 is 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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