SARASOTA, Fla., March 7, 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 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:
Daniel Carpini
xG Technology
daniel.carpini@xgtechnology.com
(941) 953-9035
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SOURCE xG Technology, Inc.