$XGTI: xG Technology Announces Early $3 Million Prepayment of $9.5 Million Vislink Promissory Note
Published: Feb 23, 2017 7:00 a.m. ET
Paydown Was Made From Existing Cash and Free Cash Flow Sources
SARASOTA, Fla., Feb. 23, 2017 /PRNewswire/ -- xG Technology, Inc. ("xG" or the "Company"
XGTI, +6.40% XGTIW, +29.93% 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
http://www.marketwatch.com/story/xg-technolog...2017-02-23
Published: Feb 23, 2017 7:00 a.m. ET
Paydown Was Made From Existing Cash and Free Cash Flow Sources
SARASOTA, Fla., Feb. 23, 2017 /PRNewswire/ -- xG Technology, Inc. ("xG" or the "Company"
XGTI, +6.40% XGTIW, +29.93% 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
http://www.marketwatch.com/story/xg-technolog...2017-02-23
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