Today's announcements absolutely confirm that xG Technology investors are shafted. Johan Bohman must be feeling such a mug. Hopefully he's reaching for the 'Lawyer' speed-dial button (on his non-xG phone) as I type. While he's pumped in millions into xG, Rick has put in a fraction of that. Now he's planted the seed of MBTH in the belly of xG, ready to burst out at any moment he chooses.
George Schmidt has so little confidence in xG's future that he chooses to join MBTH instead. He's admitted where the future lies. xG is as good a dead, and so is all the lovely money people have invested in it.
MBTH is contemplating investment in xG of a total of up to $10 million pursuant to the additional shareholder loan facility announced by the Company on October 8, 2010.Under which terms MBTH will own all of xG if Rick does not pay Rick. So, they'll put in just enough to keep the ship afloat until the Army trial result comes through. Then, whatever the result, Rick can close xG down.
If MBTH is required to make a mandatory take-over offer to the holders of all of the xG Shares not held by MBTH then the offer price will be less than the latest closing mid-price of $0.16 per xG share since MBTH will have to offer to purchase more shares than under its contemplated investment in xG.Less could be $0.01, or $0.001, or $0.0000001.
Just a matter of time. It's over.