Future Payments will be from Internal Sources and will be Contingent on the Seller’s
Performance of Contractual Obligations
Sarasota, Florida—March 7, 2017—xG Technology, Inc. (“xG” or the “Company”) (Nasdaq: XGTI, XGTIW), a leading provider of wireless video solutions to broadcast, law enforcement and defense markets, and private mobile broadband networks for critical communications, today announced an additional $1.6 million payment of the remaining $6.5 million deferred payment from the acquisition of Vislink. The payment will be made from existing cash and free cash flow sources, as was the case with the $3 million prepayment announced on Feb. 23, 2017.
xG has now made early payments totaling $4.6 million against the original promissory note, thereby reducing the remaining balance to $4.9 million. The company does not plan or anticipate any equity raise to pay off the remaining debt. Additional payments against the promissory note will also be made from existing cash and free cash flow sources.
While xG has thus far sought to work with the seller in their cash constrained situation, the Company also announced that any further payments by the contracted due date will be dependent upon the seller’s performance of all of their contractual obligations. The Company continues to work with the Seller to quantify all remaining liabilities that may otherwise impact xG should the Seller not be able to pay them and/or resolve them to the Company’s satisfaction.
George Schmitt, Executive Chairman and CEO of xG Technology, said, “At the request of the seller, we have agreed to assume liabilities that were to have been contractually paid by them. We are doing this to satisfy the outstanding payments owed to our suppliers, and will be reduced from the money we owe the seller on a dollar for dollar basis. We do not anticipate that we will know enough about the other liabilities that need to be paid by the March 17 due date, and until all outstanding liabilities are dealt with and fully agreed to by both parties, we do not intend to send any cash to the seller. Furthermore, we reserve all our rights to deal with the seller as needed in response to the numerous breaches of the contract that have occurred.”
Mr. Schmitt continued, “I would also like to emphasize that we recognize and appreciate the work of the many Vislink employees who have joined the xG family as a result of this asset purchase. They have been performing up to our expectations and we are delighted to have them as part of the xG team.”
About xG Technology, Inc.
xG Technology’s brands provide wireless video solutions to broadcast, law enforcement and defense markets, and private mobile broadband networks for use in challenging environments. Their focus is delivering communications technologies that provide enhanced levels of reliability, mobility, performance and efficiency to customer business operations and missions. xG’s brand portfolio includes Integrated Microwave Technologies (IMT), Vislink, and xMax.
IMT has pioneered advanced digital microwave systems and is a trusted supplier to broadcast, sports and entertainment, and MAG (Military, Aerospace & Government) markets. Their products are recognized for their high level of performance, reliability, build quality, extended operating ranges and compact form factors. More information about IMT can be found at www.imt-solutions.com. Vislink specializes in the wireless capture, delivery and management of secure, high-quality, live video, and serves broadcast & media and public safety & surveillance markets. More information about Vislink can be found at http://www.vislink.com/.
xMax is a secure, rapid-deploy mobile broadband system that delivers mission-assured wireless connectivity in demanding operating environments. xMax was specifically designed to serve as an expeditionary and critical communications network for use in unpredictable scenarios and during fluid situations. This makes it a compelling solution for disaster response, emergency communications, and defense applications. More information about xMax can be found at http://www.xgtechnology.com/products/.
In addition to the above business lines, xG has a dedicated Federal Sector Group (xG Federal) focused on providing next-generation spectrum sharing solutions to national defense, scientific research and other federal organizations. Additional information about xG Federal can be found at http://www.xgtechnology.com/technology/xg-federal/.
Based in Sarasota, Florida, xG Technology has over 100 patents and pending patent applications. xG is a publicly traded company listed on the NASDAQ Capital Market (symbol: XGTI) For more information, please visit www.xgtechnology.com.
Cautionary Statement Regarding Forward Looking Statements
Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words “anticipate,” “believe,” “estimate,” “upcoming,” “plan,” “target”, “intend” and “expect” and similar expressions, as they relate to xG Technology, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.
For More Information: