Wrap Technologies Secures $5.8M in Private Placement of Securities
Rhea-AI Summary
Wrap Technologies (NASDAQ: WRAP) has secured a $5.8 million private placement through the sale of securities to affiliated investment partnerships and institutional investors. The deal includes 3,216,666 shares of common stock at $1.80 per share and accompanying warrants to purchase an equal number of shares, exercisable at $1.80 per share with a five-year expiration.
The private placement, expected to close around February 28, 2025, will primarily fund working capital and general corporate purposes. The proceeds will support the company's go-to-market strategy for BolaWrap and Managed Safety and Response (MSR) Connected Ecosystem, strengthen its Made-in-America initiatives, establish a Washington, DC presence, and enhance training and customer support programs.
The majority investment comes from insiders and existing investors, with the securities being offered under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D, exempt from registration requirements.
Positive
- Secured $5.8M in new funding through private placement
- Strong insider participation indicates management confidence
- Warrants provide potential for additional future funding at $1.80/share
Negative
- Dilutive effect from issuing 3.2M new shares
- Below-market pricing at $1.80 per share may pressure stock value
- Additional dilution possible if warrants are exercised
News Market Reaction
On the day this news was published, WRAP declined 6.40%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
TEMPE, Ariz., Feb. 24, 2025 (GLOBE NEWSWIRE) -- Wrap Technologies (NASDAQ: WRAP) (“Wrap” or, the “Company”) today announced it that it has executed a securities purchase agreement with certain investment partnerships affiliated with the Company and certain accredited and institutional investors in a private placement for the purchase and sale of (i) an aggregate of 3,216,666 shares of common stock of the Company, at a purchase price of
The closing of the private placement is subject to customary closing conditions and is expected to occur on or around February 28, 2025. The Company intends to use the net proceeds of the offering for working capital and general corporate purposes.
Key Financing Highlights:
- Majority investment comes from investment partnerships affiliated with insiders and several existing investors.
- Fuels go-to-market strategy for BolaWrap and Managed Safety and Response (MSR) Connected Ecosystem, both domestically and internationally.
- Accelerates commitment to deliver Made-in-America end-to-end public safety solutions.
- Bolsters a federal plan for Washington, DC presence.
- Increasing investments in training and customer support to optimize BolaWrap programs.
The securities the private placement 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. Pursuant to a registration rights agreement, the Company has agreed to file a resale registration statement covering the securities described above.
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) is a leading global provider of advanced public safety solutions, integrating ultramodern technology, cutting-edge tools, and comprehensive services to address the complex, modern day challenges facing public safety organizations around the world. Guided by a no-harm principle, Wrap is dedicated to developing groundbreaking solutions that empower public safety agencies to safeguard the communities they serve in a manner that fosters stronger relationships, driving safer outcomes, empowering public safety and communities to move forward together.
Wrap’s BolaWrap® solution encompasses an innovative and patented hand-held remote restraint device, strategically engineered with Wrap’s no-harm guiding principle to proactively deter escalation by deploying a Kevlar® tether that safely restrains individuals from a distance. Combined with BolaWrap® training, certified by the esteemed International Association of Directors of Law Enforcement Standards and Training (IADLEST), Wrap enables officers from over 1000 agencies across the U.S. and 60 countries around the world, with the expertise to effectively use BolaWrap® as an early intervention measure, mitigating potential risks and injuries, averting tragic outcomes, with the goal to save lives with each wrap.
Wrap Reality™, the Company’s advanced virtual reality training system, is a fully immersive training simulator and comprehensive public safety training platform that equips first responders with the discipline and practice to prevent escalation, de-escalate conflicts, and apply appropriate tactical use-of-force measures to better perform in the field. By offering a growing range of real-life scenarios, Wrap Reality™ addresses the dynamic nature of modern law enforcement situations for positive public safety outcomes, building safer communities one decision at a time.
Wrap’s Intrensic solution is a comprehensive, secure and efficient body worn camera and evidence collection and management solution designed with innovative technology to quickly capture, safely handle, securely store, and seamlessly track evidence, all while maintaining full transparency throughout the process. With meticulous consolidation and professional management of evidence, confidence in law enforcement and the justice system soars, fostering trust and reliability in court outcomes. Intrensic’s efficient system streamlines the entire process seamlessly, empowering all public safety providers to focus on what matters, expediting justice with integrity.
Connect with Wrap:
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Trademark Information
Wrap, the Wrap logo, BolaWrap®, Wrap Reality™ 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. 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 private placement and the satisfaction of customary closing conditions related to the private placement, the anticipated use of proceeds therefrom, 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 business impact of health crises or outbreaks of disease, such as epidemics or pandemics; 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
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