xG Technology Prices $10 Million Offering After Being Halted For 24 Hours

xG Technology Inc XGTI, a nano-cap developer of communication technologies, became a stock on many traders radar last week after it soared more than 30 percent and was halted numerous times.

On Monday, the stock gained another 50 percent and closed the day at $3.62 after the company confirmed it will acquire Vislink Communication Systems from Vislink, Plc. The company said the acquisition would position it to be a leader in end-to-end video capture/transmit/receive solutions to broadcast, sports and entertainment, and mission-critical public safety and defense sectors worldwide.

xG Technology's stock went on to fall more than 30 percent during Tuesday's pre-market session, but was then halted for news pending.

The news wasn't released until Wednesday morning and consisted of a $10 million public offering of its stock. xG Technology will use the proceeds from the offer to fund a portion of its recently announced acquisition.

Once trading resumed Tuesday morning, the stock had lost more than 50 percent and was trading at $1.63 per share.

The securities offered by xG Technology consist of 3.8 million Class A Units and each unit consists of one share of the company's common stock and one immediately exercisable five-year warrant to purchase one and one quarter share of common stock with a warrant exercise price of $2.00.

In addition, 2,400 Class B Units will be offered which consists of one share of the Company's Series E Convertible Preferred Stock with a stated value of $1,000 and convertible into shares of the Company's common stock at $2.00 per share and immediately exercisable five-year warrants to purchase one and one quarter shares of common stock for each share of common stock into which the Series E Convertible Preferred Stock is convertible, with a warrant exercise price of $2.00.