Phone tech firm dials up $10M offering

SARASOTA — xG Technology Inc., which went public on the Nasdaq in July, announced a limited additional public offering today at $1.75 a share. The share price for the firm, which markets and sells a patented system for Internet-based phone calls, closed Nov. 12 at $2 (symbol: XGTI).

xG, according to a release, hopes to raise $10 million with the offering. The funds, after underwriting discounts and expenses, will go toward general corporate purposes, xG says in the statement. That includes working capital; product development and fulfillment; marketing; expansion of internal sales; further development of sales channels; and funding the set up of contract manufacturing production lines. The offering will close Nov. 18.

The company, with more than 60 U.S. patents and more than 130 global patents, raised more than $7 million in its IPO, when the stock reached nearly $6 a share. xG, though, in its pre-IPO public filing, stated it “has a history of operating losses and we expect to continue to realize net losses for at least the next 12 months.” The firm lost $13.79 million in 2012, the Securities and Exchange Commission filing states, and its accumulated deficit since it was founded in 2002 is $124.1 million.