xG Technology Inc (NASDAQ:XGTI) announced that it intends to offer for sale shares of its common stock and warrants to purchase its common stock in an underwritten public offering. The company intends to use the net proceeds from this offering for working capital and to fund other general corporate purposes, including funding the costs of operating as a public company. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
Aegis Capital Corp. is acting as the sole book-running manager for the offering.
The public offering would dilute shareholders’ investments, and as such xG Technology shares are dropping nearly 13% to $1.85 in after-hours trading. XGTI has a 1-year high of $34.68 and a 1-year low of $1.17. The stock’s 50-day moving average is $1.81 and its 200-day moving average is $0.74.
On the ratings front, Roth Capital analyst William Gibson reiterated a Buy rating on XGTI, with a price target of $3.50, in a report issued on January 31. The current price target implies an upside of 65% from current levels. According to TipRanks.com, Gibson has a yearly average loss of 5.1%, a 38% success rate, and is ranked #3812 out of 4373 analysts.
xG Technology, Inc. engages in the development of patented wireless communications and spectrum sharing technologies. It operates through the following segments: Broadcast, Sports and Entertainment, and Government/Surveillance. The Broadcast segment includes a line of margin receiver products including DR3, crx6, and CIRAS. The Sport and Entertainment segment offers microLite, available in both licensed and unlicensed frequency bands. The Government/Surveillance segment sells IMT, MiniMobile Commander and Mobile Commander.