xG Technology Inc (NASDAQ:XGTI) investors sent shares rising after the company announced it has paid off debt incurred from the acquisition of Integrated Microwave Technologies and earlier than required in the original acquisition agreement. xG completed the $3MM acquisition of IMT on January 29th, 2016 using debt financing from the seller, Skyview Capital, LLC.
xG subsequently recorded a bargain purchase gain on the acquisition of approximately $2.7MM after receiving an independent valuation of the assets acquired. The original agreement required payoff of the debt over the following eighteen months. xG made the final payment on the outstanding debt and, as such, the obligation to Skyview has now been paid in full. Roger Branton,
Shares of XG Technology are currently rising 11% to $2.43, or up $0.23 in pre-market trading Tuesday.
CFO Roger Branton said, “We wish to formally thank Skyview and its principals for their professionalism in working with us over the past year on the transaction.”
closed last Friday at $2.19, up $0.07 or 3.30%. 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 $1.27 and its 200-day moving average is $0.65.
On the ratings front, Roth Capital analyst William Gibson reiterated a Hold rating on XGTI, with a price target of $0.50, in a report issued on November 21. The current price target represents a potential downside of 77% from where the stock is currently trading. According to TipRanks.com, Gibson has a yearly average loss of 3.2%, a 41% success rate, and is ranked #3589 out of 4349 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.