xG Technology Inc. today announced that it will be pricing its initial public offering at USD1.75 per share. The company said that it expects to raise USD10 million in gross proceeds. xG Technology is a developer of wireless communications and spectrum sharing technologies. The Florida-based company has over 60 US and 130 international patents.
In a statement, xG technology said that it would be selling nearly 5.72 million shares of common stock, with option for underwriters to purchase up to 857,250 additional shares of common stock.
xG Technology intended to use the net proceeds from the offering for general corporate purposes. This includes working capital, product development and fulfilment, marketing activities, expansion of internal sales organization and further development of sales channels.
The wireless communications developer also said that it will be funding the set-up of contract manufacturing production lines and other capital expenditures.
Private equity firms Aegis Capital Corp. and Feltl Company will be acting as joint bookrunners for the offering. The offering is expected to close on November 18.
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