XG Technology, the wireless technology developer, has suffered another setback after it pulled production of the handset on which it was planning to launch its first full commercial network.

XG had one of Aim’s more explosive debuts in November 2006. Floating at $4.50, the shares soared to $14.60 in three months, valuing it at $1.8bn (£907m). The shares closed flat on Monday at $4.33, valuing it at $589m.