Wrap Technologies Announces the Closing of $12.0 Million Registered Direct Offering of Common Stock

Wrap Technologies (Nasdaq: WRAP) closed its previously announced registered direct offering with a fundamental institutional investor and an existing investor, issuing 8,571,609 shares of common stock (or pre-funded warrants in lieu) at $1.40 per share.

Rhea-AI Summary

Wrap Technologies (Nasdaq: WRAP) closed its previously announced registered direct offering with a fundamental institutional investor and an existing investor, issuing 8,571,609 shares of common stock (or pre-funded warrants in lieu) at $1.40 per share. The transaction generated approximately $12.0 million in gross proceeds before placement agent fees and expenses.

According to Wrap Technologies, proceeds will be used for general corporate purposes and working capital, including potential future business expansion. Maxim Group LLC served as sole placement agent. The securities were issued under an effective Form S-3 shelf registration declared effective by the SEC on December 18, 2025.

Positive

• Registered direct offering raises approximately $12.0 million in gross proceeds
• Capital raised by issuing 8,571,609 shares at $1.40 per share
• Proceeds earmarked for working capital and potential business expansion

Negative

• Issuance of 8,571,609 new shares implies equity dilution for existing shareholders
• Gross proceeds of $12.0 million are before placement agent fees and expenses, reducing net funds received

News Explained

The completed financing raises gross cash but can reduce existing holders’ ownership if shares are issued or warrants convert.

The completed offering gave Wrap Technologies approximately $12.0 million in gross proceeds before fees and consisted of 8,571,609 common shares or pre-funded warrants.

If the securities are shares, or if the pre-funded warrants convert, existing holders’ percentage ownership decreases absent offsetting changes.

A registered direct offering is a negotiated sale of registered securities to selected investors, rather than a public bookbuild.

The gross amount equals 448.8 days of the last reported quarterly operating cash outflow at the quarter ended June 30, 2026, before fees.

Sources and calculations

• Wrap Technologies Announces the Closing of $12.0 Million Registered Direct Offering of Common Stock (2026-08-18)
• Wrap Technologies Q2 2026 fundamentals (2026Q2)
• Dilution (undated)
• Pre-funded warrant (undated)
• Registered direct offering (undated)

• Offering gross against the last reported quarterly operating outflow, in days at that rate $12,000,000 / ($2,433,000 / 91) = 448.8 days

Argus Aug 19 session 3 alerts

+2.22% close to close 2.0x rel. volume Open Argus

Details

News Market Reaction – WRAP

$86.81M Market Cap

On Aug 19, the first trading day after this news, WRAP closed 2.22% above the previous close. Our momentum scanner recorded 3 alerts in the available session data. Relative volume reached 2.0x the daily average during tracking.

Data tracked by StockTitan Argus for the Aug 19 session.

Key Figures

Shares offered: 8,571,609 shares Offering price: $1.40 per share Gross proceeds: $12.0 million +1 more

Shares offered

8,571,609 shares

Registered direct offering

Offering price

$1.40 per share

Registered direct offering

Gross proceeds

$12.0 million

Before placement agent fees and other offering expenses

S-3 effectiveness date

December 18, 2025

Shelf registration statement declared effective by the SEC

Previous Offering Reports

1 past event · Latest: Aug 17

Same Type 1 event

1. Aug 17

   Offering pricing

   24h Move

   -13.8%

   Registered direct offering priced at $1.40 per share for $12.0 million gross proceeds.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

registered direct offering, pre-funded warrants, shelf registration statement, form s-3

4 terms

registered direct offering financial

"today announced it has closed its previously announced registered direct offering"

A registered direct offering is a way for a company to sell new shares of its stock directly to select investors with regulatory approval. This method allows the company to raise funds quickly and efficiently without needing a public auction, similar to offering exclusive access to a limited number of buyers. For investors, it often provides an opportunity to purchase shares at a favorable price, while giving the company immediate access to capital.

pre-funded warrants financial

"common stock (or pre-funded warrants in-lieu thereof)"

Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.

shelf registration statement regulatory

"offered pursuant to a shelf registration statement on Form S-3"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

form s-3 regulatory

"a shelf registration statement on Form S-3"

Form S-3 is a legal document companies use to register their stock sales with the government, making it easier and faster for them to raise money by selling shares to investors. It’s like having a pre-approved shopping list that lets a company quickly sell new shares when they need funds, without going through a lengthy approval process each time.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MIAMI, Aug. 18, 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 it has closed its previously announced 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 $1.40 per share. The gross proceeds to the Company from the Offering were approximately $12.0 million before deducting placement agent fees and other Offering expenses. The Company intends to use the proceeds from the Offering for general corporate purposes and working capital, including for any future planned business expansion.

Maxim Group LLC acted as the sole placement agent in connection with the Offering.

The securities were 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 was 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 was filed by the Company with the SEC. 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 use of proceeds from the Offering, 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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Wrap Technologies (WRAP) announce about its $12.0 million offering on August 18, 2026?

Wrap Technologies announced the closing of a registered direct offering raising approximately $12.0 million in gross proceeds. According to Wrap Technologies, the financing involved new common shares or pre-funded warrants sold to an institutional investor and an existing investor.

How many shares did Wrap Technologies (WRAP) issue in the August 2026 registered direct offering?

Wrap Technologies issued 8,571,609 shares of common stock, or pre-funded warrants in lieu of shares, at $1.40 per share. According to Wrap Technologies, these securities were sold to a fundamental institutional investor and an existing shareholder.

What is the offering price and gross proceeds of the Wrap Technologies (WRAP) direct offering?

The offering price was $1.40 per share, generating approximately $12.0 million in gross proceeds. According to Wrap Technologies, this amount is before deducting placement agent fees and other offering-related expenses.

How will Wrap Technologies (WRAP) use the $12.0 million raised in the August 2026 offering?

Wrap Technologies plans to use the proceeds for general corporate purposes and working capital. According to Wrap Technologies, funds may also support future planned business expansion, although no specific projects or timelines are detailed.

Who acted as placement agent for the Wrap Technologies (WRAP) registered direct offering?

Maxim Group LLC acted as the sole placement agent for the registered direct offering. According to Wrap Technologies, the securities were issued under an effective Form S-3 shelf registration declared effective by the SEC on December 18, 2025.

Was the Wrap Technologies (WRAP) August 2026 offering conducted under an effective SEC registration?

Yes. The offering was made under a shelf registration statement on Form S-3 (File No. 333-291707). According to Wrap Technologies, this registration was declared effective by the U.S. Securities and Exchange Commission on December 18, 2025.