SARASOTA, Fla., Feb. 23, 2017 /PRNewswire/ -- 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 that it has paid down
$3 million of the $9.5 million deferred payment it assumed in the
acquisition of Vislink. The prepayment was made from internal
funding sources, primarily existing cash and free cash flow, and
reflects the desire of the Company to minimize the need for
financing from external sources.
xG's acquisition of Vislink, which was completed on
February 2, 2017, was paid for with $6.5
million in cash and a $9.5
million promissory note. At the request of the seller, xG
has agreed to assume $3 million of
additional accruals and trade liabilities to settle some of the
debt earlier than originally scheduled.
The arrangement for the early prepayment was negotiated by
Roger Branton, CFO and co-founder of
xG Technology, and Rick Mooers,
Director and co-founder of xG. Mr. Branton and his team will work
directly with the individual holders of the liabilities xG will be
assuming. The Company will seek to make additional early paydowns
against the remaining $6.5 million
debt from the acquisition using internal cash flow resources in the
near future.
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:
Daniel Carpini
xG Technology
daniel.carpini@xgtechnology.com
(941) 953-9035
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SOURCE xG Technology, Inc.