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FOR IMMEDIATE RELEASE
21 May
2008
xG Technology, Inc.
DIRECTOR INCREASES EQUITY
POSITION
xG ("the Company" or "xG") is pleased to announce that, Palmi Sigmarsson, a director of xG, has
increased his beneficial holding in xG by 2,097,152 shares.
Mr. Sigmarsson accomplished this through a series of transactions including:
* On 16 May 2008 Mr. Sigmarsson gave notice that he wished to exercise options to acquire 250,000
common shares of US$0.01 each in the Company at an exercise price of US$0.55 per common share.
The options to be exercised were granted to Mr. Sigmarsson on joining the Company prior to the
Company being admitted to AIM.
* An application will be made for 250,000 common shares of US$0.01 each in the Company, which will rank pari passu with existing common shares, to be admitted to trading on AIM. The new common
shares will be issued and trading is expected to commence on 28 May 2008. Mr. Palmi Sigmarsson
agreed to sell the 250,000 common shares on 20 May 2008 at a price of 5 USD per common share.
* In addition Mr. Sigmarsson entered into a forward contract with Landsbanki Luxembourg SA ("the Bank"). In accordance with the forward contract, the Bank has lent to Mr. Sigmarsson 450,000
shares in xG on20May, 2008. In return Mr. Sigmarsson has to deliver 450,000 shares of xG within
five working days after 30 January 2009, following the exercise of further share options Mr. Sigmarsson currently holds. Mr. Sigmarsson agreed to sell the 450,000 shares on 20 May 2008 at a price of 5 USD per common share.
* Mr. Sigmarsson currently holds a majority stake in Styr ehf, the parent of Stormur Holdings AB which holds 22,344,191 common shares in the Company. Using the entire proceeds from the
sale of shares outlined above, on 20 May 2008, Mr. Sigmarsson acquired shares in Styr ehf to increase his stake in Styr ehf from 57.0% to 58.7% and negotiated an option to acquire another 1.7%. In addition, Mr. Sigmarsson acquired shares representing 70% of the issued share capital of
Baejarlind Holding ehf, which holds 2,453,287 common shares of the Company.
As a result of exercising the above options and through the series of transactions outlined above,
Mr. Sigmarsson has beneficially increased his equity position in the Company from 9.80% to 11.26%. 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.
CONTACTS
Rick Mooers, Chairman and CEO
Roger Branton, COO and CFO
+44 20-7367-8888
www.xgtechnology.com
Steve Liebmann, Simon Bloomfield or Chris Price
Bankside
+44 20-7367-8888
Xavier Moreels or Francis Moore
ING Bank N.V., London Branch (Nominated Adviser)
+44 20-7767-1000
ABOUT XG TECHNOLOGY
Based in Florida, USA, xG Technology has developed
innovative, patented wireless communications technologies
which offer the potential to reduce significantly the capital
investment in and running costs of wireless voice and data
communications services.
XGT has designed a mobile VoIP (Voice over Internet
Protocol) base station and handset product line. Branded as
xMax, these products are intended for use by regional carriers
(internet service providers, competitive local exchange
carriers and entrepreneurial parties) seeking to deliver
mobile Internet Protocol voice and data services directly to
consumers without using the incumbent circuit switched or
coaxial cable networks. The xMax system provides extended
range of operation and an expected superior handset battery
performance. Planned future releases of the xMax product line
include integrated video and data applications.
This information is provided by RNS
The company news service from the London Stock Exchange |
