SARASOTA, Fla., Aug. 19, 2013 /PRNewswire/ -- xG Technology, Inc. (Nasdaq: XGTI, XGTIW; AIM: XGTU.L, XGT.L) ("xG" or the "Company"), announced today that it closed on the over-allotment associated with its previously announced underwritten public offering of its common stock and warrants. After giving effect to this option exercise, the offering involved 1,538,460 shares of common stock and 769,230 warrants to purchase an additional 769,230 shares of common stock. The initial public offering price was $5.50 per share and $0.01 per warrant. xG received gross proceeds from the offering, including the exercised over-allotment option, before deducting the underwriting discount and estimated offering expenses payable by xG, of approximately $8,469,222. The over-allotment option was granted by the Company in conjunction with the underwritten initial public offering completed on July 24, 2013. As previously announced, xG intends to use the proceeds of this offering for general corporate purposes, including working capital, product development, marketing activities, expanding its internal sales organization and further developing sales channels, funding the set-up of contract manufacturing production lines and other capital expenditures. Feltl and Company Inc. and Aegis Capital Corp. acted as the book-running managers for the offering. The offering is being made pursuant to a registration statement on Form S-1 that xG Technology has filed with the Securities and Exchange Commission ("SEC") and which is effective. A final prospectus supplement containing important information relating to these securities was filed with the SEC. Copies of the final prospectus supplement relating to these securities may be obtained by contacting Feltl and Company, Inc., Prospectus Department, 800 LaSalle Avenue, 2100 LaSalle Plaza, Minneapolis, MN 55402, telephone: 612-492-8800, e-mail: email@example.com or Aegis Capital Corp., Prospectus Department, 810 Seventh Avenue, 18th Floor, New York, NY,10019,telephone: 212-813-1010 or email: firstname.lastname@example.org. Electronic copies of the final prospectus supplement will also be available on the website of the SEC at http://www.sec.gov. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale is not permitted. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the preliminary prospectus supplement, the registration statement, or the final prospectus supplement.