Wrap Raises $5 Million to Restart Manufacturing

Rhea-AI Summary

Wrap (NASDAQ: WRAP) announced a $5.0 million private placement to restart domestic manufacturing, advance R&D toward commercialization, rehire key production and quality personnel, and expand training and federal/international programs for its non-lethal response platform.

The financing will issue 2,500,000 common shares at $2.00 and warrants for up to 2,500,000 shares (exercise $2.30, five-year term); closing expected on or about February 3, 2026.

Positive

• Raised $5.0 million via private placement
• Issuance of 2,500,000 common shares at $2.00
• Warrants for 2,500,000 shares exercisable at $2.30

Negative

• Potential dilution from 2,500,000 shares plus 2,500,000 warrants
• Financing closing is subject to customary conditions (expected Feb 3, 2026)
• Gross proceeds are $5.0 million before offering expenses

Key Figures

Private placement size: $5 million Shares issued: 2,500,000 shares Purchase price: $2.00 per share +5 more

8 metrics

Private placement size $5 million Gross proceeds from February 2026 private placement

Shares issued 2,500,000 shares Common stock to be issued in private placement

Purchase price $2.00 per share Price for common stock or pre-funded warrants

Common warrants 2,500,000 warrants Warrants to purchase common stock in placement

Warrant exercise price $2.30 per share Initial exercise price of common warrants

Warrant term 5 years Expiration from date of warrant issuance

Expected closing date February 3, 2026 Anticipated private placement closing

Registered resale shares 6,000,000 shares Shares registered on Form S-3/A for resale

Market Reality Check

Price: $2.18 Vol: Volume 486,173 is 10% abo...

normal vol

$2.18 Last Close

Volume Volume 486,173 is 10% above the 20-day average of 441,853. normal

Technical Price $2.18 is trading above the 200-day MA at $1.94.

Peers on Argus

WRAP fell 4.39% while several peers like GNSS (-4.66%), MIND (-5.10%), and SOTK ...

WRAP fell 4.39% while several peers like GNSS (-4.66%), MIND (-5.10%), and SOTK (-4.86%) were also down, but no peers appeared in momentum scanners and sector moves are not flagged as coordinated.

Historical Context

5 past events · Latest: Jan 28 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 28	Product launch	Positive	+2.9%	Launch of NDAA- and TAA-aligned WrapVision body-worn camera platform.
Jan 26	Training partnership	Positive	-3.3%	Launch of Arrest-in-Control training unit via WrapTactics LMS.
Jan 21	Customer adoption	Positive	-2.8%	Warren County adopts WRAP Reality VR system with major facility buildout.
Jan 15	IP filing	Positive	+2.3%	IP applications for next-generation multi-shot non-lethal platform.
Jan 12	Customer expansion	Positive	+14.5%	Glenwood Springs PD expands BolaWrap-based non-lethal response program.

Pattern Detected

Recent operational and product announcements have mostly been positive, with mixed price reactions: three aligned upside moves and two selloffs despite favorable news.

Recent Company History

Over the past month, WRAP issued multiple positive updates across products and training. On Jan 28, it launched the NDAA- and TAA-aligned WrapVision body‑worn camera platform, which saw a 2.9% gain. Earlier, a training collaboration launch on Jan 26 and a VR training deployment on Jan 21 both drew modest negative reactions. A multi‑shot non‑lethal IP filing on Jan 15 and a BolaWrap training expansion on Jan 12 produced upside, including a 14.5% move. Today’s capital raise adds financing context to that growth narrative.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-12-12

An effective shelf registration on Form S-3/A dated Dec 12, 2025 registers up to 6,000,000 common shares for resale tied to a prior preferred stock and warrant financing, representing about 10.43% of then-outstanding shares and signaling meaningful potential dilution from resale over time.

Market Pulse Summary

This announcement details a $5 million private placement issuing 2,500,000 shares and an equal numbe...

Analysis

This announcement details a $5 million private placement issuing 2,500,000 shares and an equal number of warrants to fund manufacturing restart, R&D, and training expansion. It follows recent launches in cameras, VR training, and multi‑shot non‑lethal systems. Investors may weigh these growth uses of capital against dilution from the new securities and the existing 6,000,000-share resale registration, while monitoring execution on manufacturing, commercialization, and federal expansion.

Key Terms

securities purchase agreement, private placement, pre-funded warrant, warrants, +4 more

8 terms

securities purchase agreement financial

"today announced that it entered into a securities purchase agreement for a $5"

A securities purchase agreement is a written contract between a buyer and a seller outlining the terms for buying or selling financial assets such as stocks or bonds. It specifies details like the price, quantity, and conditions of the transaction, similar to a shopping list with agreed-upon terms. For investors, it provides clarity and legal protection when transferring ownership of these financial instruments.

private placement financial

"announced that it entered into a securities purchase agreement for a $5 million private placement."

A private placement is a way for companies to raise money by selling securities directly to a small group of investors instead of through a public offering. This process is often quicker and less regulated, making it similar to offering a special, exclusive investment opportunity to select individuals or institutions. For investors, it can provide access to unique investment options that are not available on public markets.

pre-funded warrant financial

"at a purchase price of $2.00 per share of common stock (or per pre-funded warrant in lieu thereof)"

A pre-funded warrant is a financial instrument that gives the holder the right to buy shares of a company's stock at a set price, with most of the purchase cost already paid upfront. It functions like a nearly fully paid option, allowing investors to secure shares quickly while minimizing the amount of additional money they need to invest later. This helps investors gain ownership rights efficiently, often used to avoid certain regulatory restrictions or to prepare for future stock purchases.

warrants financial

"and warrants to purchase up to an aggregate amount of 2,500,000 shares of common stock in a private"

Warrants are special documents that give you the right to buy a company's stock at a set price before a certain date. They are often used as a way for companies to attract investors or raise money, and their value can increase if the company's stock price goes up.

common warrants financial

"The common warrants issued in private placement will be immediately exercisable at an initial"

A common warrant is a tradable instrument that gives its holder the right to buy a company’s common shares at a fixed price within a set time period, similar to a coupon that can be redeemed later to purchase stock. Investors care because exercising warrants can boost potential gains if the stock rises, but it can also dilute existing shareholders by increasing the number of shares outstanding, which can lower per-share value.

Form 8-K regulatory

"please see the Company’s Current Report on Form 8-K that is expected to be filed"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

Section 4(a)(2) regulatory

"under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities"

Section 4(a)(2) is a part of U.S. securities laws that allows companies to sell their stock directly to certain investors without registering the sale with regulators. This process is often used for private placements, making it easier and faster for companies to raise money from knowledgeable or institutional investors. It matters to investors because it provides an alternative way to buy shares, often with fewer disclosures and lower costs.

Regulation D regulatory

"Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act"

Regulation D is a set of rules that govern how companies can raise money from investors without going through the full process required for public stock offerings. It provides simplified options for private placements, making it easier for companies to seek investments from a smaller group of investors. For investors, it offers opportunities to invest in private companies, often with fewer restrictions, but also with different levels of risk and disclosure.

AI-generated analysis. Not financial advice.

Investing in R&D and Quality Controls, Rehiring Key Talent, and Advancing Non-Lethal Sight, Sound, and Drone Capabilities

MIAMI, Feb. 02, 2026 (GLOBE NEWSWIRE) -- Wrap Technologies, Inc. (NASDAQ: WRAP) (“Wrap” or, the “Company”), a global leader in non-lethal response solutions, today announced that it entered into a securities purchase agreement for a $5 million private placement. The capital raise is expected to enable the Company to restart domestic manufacturing, advance validated R&D programs into commercialization, and responsibly accelerate early growth initiatives aligned with rising demand for non-lethal response capabilities.

Market Opportunity

Wrap’s market opportunity extends beyond a single-device business model to an integrated response platform that combines technology, training, and policy. This is expected to expand the Company’s addressable market by positioning Wrap as a Non-Lethal Response provider, delivering system-level capabilities rather than standalone tools across state, local, and federal agencies, as well as select private-sector and commercial security environments where non-lethal, low-risk response solutions are increasingly required.

As part of this transition, the Company is reengaging select manufacturers and key suppliers to support resumed production, future innovation, and supporting management’s outlook.

Manufacturing Restart and Quality Controls

Wrap is restarting domestic manufacturing with a renewed focus on rigorous quality control standards for its Non-Lethal Response technologies. This is expected to include the return of experienced quality and production personnel who were integral to earlier high-reliability manufacturing runs, as well as the reimplementation of proven inspection, testing, and process controls. These efforts reflect the Company’s emphasis on precision, durability, and consistency as it prepares for expanded deployments across domestic and federal markets.

Training Expansion and Operational Readiness

In parallel, Wrap is increasing domestic training capacity to support broader adoption of Non-Lethal Response programs. Training is expected to be delivered through a tiered model that includes lead instructors, train-the-trainer certification, and hybrid delivery combining in-person and digital instruction for all operators of its expanded Non-Lethal Response technologies. The training expansion is expected to focus on operational integration, lawful control, and scenario-based readiness, ensuring agencies may have the opportunity to deploy non-lethal tools effectively and safely in real-world conditions.

Research and Development and Product Commercialization

Many of Wrap’s recent R&D initiatives have progressed through testing and are now entering final validation stages. Additional capital is required to bring these capabilities to market, including next-generation multi-shot systems, drone-enabled non-lethal delivery concepts, and other supporting technologies designed to provide low-collateral, non-lethal options across a wider range of operational environments.

Federal and International Expansion

These investments are expected to support the continued expansion of Wrap Federal, the Company’s federal and international business segment focused on U.S. government agencies and allied operations requiring non-lethal, low-collateral solutions. Wrap sees growing opportunity across federal, defense-adjacent, and international use cases where early, non-lethal intervention may improve outcomes while preserving mission readiness.

Leadership Commentary

“Our focus is on adding the resources required to accelerate growth, particularly across manufacturing, quality control, marketing, and R&D,” said Scot Cohen, CEO of Wrap. “This capital may allow us to take proven concepts, finalize validation, and responsibly bring them to market, while restoring manufacturing excellence and expanding training to meet real operational demand.”

Private Placement

Under the terms of the securities purchase agreement, the Company agreed to issue 2,500,000 shares of common stock at a purchase price of $2.00 per share of common stock (or per pre-funded warrant in lieu thereof) and warrants to purchase up to an aggregate amount of 2,500,000 shares of common stock in a private placement. The common warrants issued in private placement will be immediately exercisable at an initial exercise price of $2.30 per share and will expire five years from the date of issuance. The private placement is expected to close on or about February 3, 2026, subject to the satisfaction of customary closing conditions. The gross proceeds from the offering are expected to be $5 million, prior to deducting offering expenses payable by the Company.

For a full description of the terms of the financing, please see the Company’s Current Report on Form 8-K that is expected to be filed with the U.S. Securities and Exchange Commission (“SEC”).

The securities in the offering were offered and sold in transactions exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act and in reliance on similar exemptions under applicable state laws. Accordingly, the securities issued in the private placement and shares of common stock underlying the warrants may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. Pursuant to a registration rights agreement, the Company has agreed to file one or more registration statements with the SEC covering the resale of the shares of common stock and the shares of common stock issuable upon exercise of the pre-funded warrants and common warrants.

This press release is not an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Wrap Technologies, Inc.

Wrap Technologies, Inc. (Nasdaq: WRAP) a global leader in innovative public safety technologies and non-lethal tools, delivering cutting-edge technology with exceptional people to address the complex, modern day challenges facing public safety organizations.

Wrap's complete public safety portfolio includes the non-lethal BolaWrap^® 150 device, WrapReality™ immersive training platform, WrapVision™ body-worn camera system, WrapTactics™ training programs, and next-generation CUAS solutions like PAN-DA and the 1KC Kinetic Anti-Drone Cassette, all of which supports the Company's mission to provide safer, scalable, and cost-effective technologies for public safety, defense, and critical infrastructure markets. Wrap's BolaWrap^® 150 solution leads in pre-escalation intended to provide law enforcement with a safer choice for nearly every phase of a critical incident. This innovative, patented device deploys a multi-sensory, cognitive disruption that leverages sight, sound and sensation to expand the pre-escalation period and gives officers the advantage and critical time to manage non-compliant subjects before resorting to higher-force options. The BolaWrap^® 150 is not pain-based compliance. It does not shoot, strike, shock, or incapacitate, instead, it helps officers strategically operate pre-escalation on the force continuum, reducing the risk of injury to both officers and subjects. Used by over 1,000 agencies across the U.S. and in 60 countries, BolaWrap^® is backed by training certified by the International Association of Directors of Law Enforcement Standards and Training (IADLEST), reinforcing Wrap's commitment to public safety through cutting-edge technology and expert training.

WrapReality™ VR is a fully immersive training simulator to enhance decision-making under pressure.

As a comprehensive public safety training platform, it provides first responders with realistic, interactive scenarios that reflect the evolving challenges of modern law enforcement. By offering a growing library of real-world situations, WrapReality™ is intended to equip officers with the skills and confidence to navigate high-stakes encounters effectively, which we believe leads to safer outcomes for both responders and the communities they serve.

WrapVision is an all-new body-worn camera and evidence management system built for efficiency.

Designed for efficiency, security, and transparency to meet the rigorous demands of modern law enforcement, WrapVision captures, stores, and helps manage digital evidence, ensuring operational security, regulatory compliance, and enhanced video picture quality and field of view.

The WrapVision camera, powered by IONODES, boasts streamlined cloud integration and final North American assembly, with country-of-origin (COO) United States. This track helps ensure data integrity and helps eliminate critical concerns over unauthorized access or foreign surveillance risks.

Trademark Information

Wrap, the Wrap logo, BolaWrap^®, WrapReality™ and Wrap Training Academy are trademarks of Wrap Technologies, Inc., some of which are registered in the U.S. and abroad. All other trade names used herein are either trademarks or registered trademarks of the respective holders.

Cautionary Note on Forward-Looking Statements - Safe Harbor Statement

This release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expect," "anticipate," "should", "believe", "target", "project", "goals", "estimate", "potential", "predict", "may", "will", "could", "intend", and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Moreover, forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control and include, but are not limited to, statements relating to the completion of the offering, the satisfaction of customary closing conditions related to the offering and the intended use of proceeds therefrom, Wrap's planned future products, technologies, integration, intended product designs and expected benefits therefrom, expected market opportunities and outcomes related to Wrap's products to increase officer and public safety. The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the Company's ability to maintain compliance with the Nasdaq Capital Market's listing standards; the Company's ability to successfully implement training programs for the use of its products; the Company's ability to manufacture and produce products for its customers; the Company's ability to develop sales for its products; the market acceptance of existing and future products; the availability of funding to continue to finance operations; the complexity, expense and time associated with sales to law enforcement and government entities; the lengthy evaluation and sales cycle for the Company's product solutions; product defects; litigation risks from alleged product-related injuries; risks of government regulations; the impact resulting from geopolitical conflicts and any resulting sanctions; the ability to obtain export licenses for counties outside of the United States; the ability to obtain patents and defend intellectual property against competitors; the impact of competitive products and solutions; and the Company's ability to maintain and enhance its brand, as well as other risk factors mentioned in the Company's most recent annual report on Form 10-K, subsequent quarterly reports on Form 10-Q, and other Securities and Exchange Commission filings. These forward-looking statements are made as of the date of this release and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.

Investor Relations Contact:

(800) 583-2652
ir@wrap.com

FAQ

What financing did Wrap (NASDAQ: WRAP) announce on February 2, 2026?

Wrap announced a $5.0 million private placement to raise capital for manufacturing and R&D. According to the company, the offering includes 2,500,000 common shares at $2.00 and warrants to purchase up to 2,500,000 shares exercisable at $2.30.

How will the $5M private placement affect Wrap's manufacturing plans (WRAP)?

The capital is intended to restart domestic manufacturing and restore quality controls. According to the company, funds will rehire experienced production and quality personnel and reimplement inspection, testing, and process controls for expanded deployments.

What are the warrant terms issued in Wrap's (WRAP) private placement?

Warrants issued may cover up to 2,500,000 shares with a five-year term and $2.30 exercise price. According to the company, the common warrants will be immediately exercisable and expire five years from issuance.

When is Wrap's (WRAP) private placement expected to close and are there conditions?

The private placement is expected to close on or about February 3, 2026, subject to customary closing conditions. According to the company, completion depends on satisfying those customary conditions at closing.

What will Wrap (WRAP) use the funds from the $5M offering for?

Proceeds will fund R&D commercialization, training expansion, and manufacturing restart. According to the company, capital will advance validated programs, expand training capacity, and support federal and international business growth.