What's Going On With xG Technology?

xG Technology Inc (NASDAQ: XGTI) is a relatively unknown company that attracted investors attention on Friday as it was halted several times.

xG Technology is a developer of communication technologies and its brand of products include: 1) xMax, a patented all-IP cognitive radio network system that enables secure, robust mobile broadband communications for private, consumer and government network, and 2) Integrated Microwave Technologies (IMT).

xG Technology announced a 1-for-10 reverse stock split, which took affect on Friday. The company noted the stock split was necessary to maintain the listing of its common stock on the Nasdaq exchange.

In addition to a stock split giving the impression that shares of xG Technology soared higher on Friday, a rumor surfaced shortly before 11:00 a.m. ET which suggested the company won a contract to provide Tesla Motors Inc (NASDAQ: TSLA) with its wireless technology. However, this rumor could not be confirmed.

At around 11:03 a.m. ET, xG Technology's stock was halted on a circuit breaker which provides investors with a bit of a breather before trading resumes a few minutes later. Typically speaking, investors shouldn't worry about a circuit breaker halt, but they may have reason to be concerned if a stock is halted under a "T12" code.

Trading in the stock resumed at 11:08 a.m. ET, but was halted again just two minutes later.

Once trading resumed at for the second time following a halt at 11:15 a.m. ET, the stock was trading higher by more than 20 percent.

A third halt occurred at 11:17 a.m. ET, when the stock had recorded a gain of 30 percent on the day.

xG Technology's stock hit an intra-day high of $4.25 but shortly after noon the stock was seen trading at $3.11, down 3 percent on the day.