Wrap Technologies Announces Pricing of $12.0 Million Registered Direct Offering of Common Stock
Rhea-AI Summary
Wrap Technologies (Nasdaq: WRAP) has priced a registered direct offering of approximately 8,571,609 shares of common stock (or pre-funded warrants in lieu) at $1.40 per share, for estimated gross proceeds of about $12.0 million before fees and expenses.
According to Wrap Technologies, the company plans to use the capital for general corporate purposes and working capital, including potential future business expansion. The offering with a fundamental institutional investor and an existing investor is expected to close on or about August 18, 2026, subject to customary conditions. Maxim Group is the sole placement agent, and the securities are being issued under an effective Form S-3 shelf registration.
Positive
- $12.0 million gross proceeds to strengthen liquidity and working capital
- Equity sold at a defined price of $1.40 per share
- Participation by a fundamental institutional investor and an existing investor
Negative
- Issuance of about 8.57 million new shares implies equity dilution for existing holders
- Net proceeds will be lower than $12.0 million after placement fees and expenses
News Explained
The priced raise remains pending; completion would bring about $12 million gross and create dilution risk through common shares or pre-funded-warrant conversion.
The
Issuing the common shares would increase total share count and reduce existing holders’ percentage ownership absent offsetting changes; if pre-funded warrants are used, they convert to shares when exercised.
On the latest quarter’s operating-cash-use basis, the
The expected
Sources and calculations
- Wrap Technologies Announces Pricing of $12.0 Million Registered Direct Offering (2026-08-17)
- Dilution (undated)
- Pre-funded warrant (undated)
- Registered direct offering (undated)
- Prospectus supplement purpose (undated)
- Wrap Technologies Q2 2026 fundamentals (2026Q2)
- Offering gross vs quarterly operating cash outflow, in days of cash use $12,000,000 / ($2,433,000 / 90) = [object Object]
- Cash and equivalents vs quarterly operating cash outflow, in days of cash use $4,781,000 / ($2,433,000 / 90) = [object Object]
Market reaction after registered direct offering: WRAP -9.57%
Following this news, WRAP has declined 9.57%, reflecting a notable negative market reaction. Argus tracked a trough of -21.8% from its starting point during tracking. Our momentum scanner has triggered 6 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $1.70. Trading volume is exceptionally heavy at 72.9x the average, suggesting significant selling pressure.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 14 | Teacher safety initiative | Positive | +8.6% | WOFT selected WRAP for Florida teacher safety training services |
| Aug 13 | Security program partnership | Positive | +0.9% | XINSURANCE partnership targeted the private security workforce |
| Aug 11 | Q2 earnings report | Positive | -7.2% | Revenue increased 103% year over year despite continued losses |
| Aug 07 | Training platform launch | Positive | -4.1% | WrapTactics launch completed the WrapShield training foundation |
| Aug 04 | Earnings call scheduling | Neutral | -2.5% | Company scheduled its Q2 2026 financial results conference call |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Positive announcements produced both aligned gains and divergences, including a -7.22% reaction after positive Q2 results.
Key Terms
registered direct offering financial
pre-funded warrants financial
shelf registration statement regulatory
placement agent financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
MIAMI, Aug. 17, 2026 (GLOBE NEWSWIRE) -- Wrap Technologies, Inc. (Nasdaq: WRAP) (“WRAP” or the “Company”), a global public safety technology company delivering intelligent detection, orchestration and response solutions designed for the next generation of autonomous public safety, today announced the pricing of a registered direct offering (the “Offering”) with a fundamental institutional investor and an existing investor of the Company, consisting of 8,571,609 shares of the Company’s common stock (or pre-funded warrants in-lieu thereof) at an offering price of
Maxim Group LLC is acting as the sole placement agent in connection with the Offering.
The securities are being offered pursuant to a shelf registration statement on Form S-3 (File No. 333-291707), which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on December 18, 2025. The Offering will be made only by means of a prospectus supplement and the accompanying prospectus that form a part of such registration statement. A prospectus supplement relating to the Offering will be filed by the Company with the SEC. When available, copies of the prospectus supplement and accompanying prospectus can be obtained at the SEC’s website at www.sec.gov or from Maxim Group LLC, 300 Park Avenue, New York, NY 10022, Attention: Syndicate Department, via email at syndicate@maximgrp.com, or telephone at (212) 895-3500.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About Wrap Technologies, Inc.
Wrap Technologies, Inc. (Nasdaq: WRAP) is a global public safety technology and training company focused on developing tools, training and capabilities designed to support awareness, earlier intervention and more appropriate responses to challenging encounters.
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. Forward-looking statements include, but are not limited to, statements relating to the satisfaction of customary closing conditions, the completion, timing and size of the Offering and the use of proceeds therefrom, including any statements regarding any future planned business expansion. 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; market acceptance of existing and future products; changes in law enforcement budgets, policies, procurement practices, and use-of-force standards; 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 and changes in regulatory classifications or interpretations; the impact resulting from geopolitical conflicts and any resulting sanctions; the ability to obtain export licenses for countries 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
wrap.com
