Wrap Technologies Secures $5.8M in Private Placement of Securities
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.
Wrap Technologies (NASDAQ: WRAP) ha ottenuto un collocamento privato di 5,8 milioni di dollari tramite la vendita di titoli a partnership di investimento affiliate e investitori istituzionali. L'accordo include 3.216.666 azioni ordinarie a 1,80 dollari per azione e relativi warrant per l'acquisto di un numero uguale di azioni, esercitabili a 1,80 dollari per azione con scadenza di cinque anni.
Il collocamento privato, previsto per chiudere intorno al 28 febbraio 2025, finanzierà principalmente il capitale circolante e scopi aziendali generali. I proventi supporteranno la strategia di ingresso nel mercato per BolaWrap e l'Ecosistema Connesso di Managed Safety and Response (MSR), rafforzeranno le iniziative Made-in-America, stabiliranno una presenza a Washington, DC, e miglioreranno i programmi di formazione e supporto ai clienti.
La maggior parte dell'investimento proviene da insider e investitori esistenti, con i titoli offerti ai sensi della Sezione 4(a)(2) del Securities Act e della Regola 506 del Regolamento D, esenti dai requisiti di registrazione.
Wrap Technologies (NASDAQ: WRAP) ha asegurado una colocación privada de 5.8 millones de dólares a través de la venta de valores a asociaciones de inversión afiliadas e inversores institucionales. El acuerdo incluye 3,216,666 acciones ordinarias a 1.80 dólares por acción y garantías asociadas para comprar un número igual de acciones, ejercitables a 1.80 dólares por acción con una expiración de cinco años.
Se espera que la colocación privada se cierre alrededor del 28 de febrero de 2025, y financiará principalmente capital de trabajo y propósitos corporativos generales. Los ingresos apoyarán la estrategia de entrada al mercado para BolaWrap y el Ecosistema Conectado de Managed Safety and Response (MSR), fortalecerán sus iniciativas Made-in-America, establecerán una presencia en Washington, DC, y mejorarán los programas de capacitación y soporte al cliente.
La mayor parte de la inversión proviene de insiders e inversores existentes, con los valores ofrecidos bajo la Sección 4(a)(2) de la Ley de Valores y la Regla 506 del Reglamento D, exentos de requisitos de registro.
랩 테크놀로지스 (NASDAQ: WRAP)는 투자 파트너십과 기관 투자자에게 유가 증권을 판매하여 580만 달러의 사모 배치를 확보했습니다. 이 거래에는 주당 1.80달러에 3,216,666주의 보통주와 같은 수의 주식을 구매할 수 있는 워런트가 포함되어 있으며, 이는 5년 만기와 함께 행사할 수 있습니다.
2025년 2월 28일경에 마감될 것으로 예상되는 이번 사모 배치는 주로 운영 자본과 일반 기업 목적을 지원할 것입니다. 수익금은 BolaWrap 및 관리 안전 및 응답(MSR) 연결 생태계의 시장 진입 전략을 지원하고, Made-in-America 이니셔티브를 강화하며, 워싱턴 DC에 존재감을 확립하고, 교육 및 고객 지원 프로그램을 향상시킬 것입니다.
대부분의 투자는 내부자와 기존 투자자들로부터 나오며, 유가 증권은 증권법 제4(a)(2)조 및 규정 D의 506조에 따라 제공되어 등록 요건에서 면제됩니다.
Wrap Technologies (NASDAQ: WRAP) a sécurisé un placement privé de 5,8 millions de dollars grâce à la vente de titres à des partenariats d'investissement affiliés et à des investisseurs institutionnels. L'accord comprend 3 216 666 actions ordinaires à 1,80 dollar par action et des bons de souscription associés pour acheter un nombre égal d'actions, exerçables à 1,80 dollar par action avec une expiration de cinq ans.
Le placement privé, qui devrait se clôturer autour du 28 février 2025, financera principalement le fonds de roulement et les objectifs généraux de l'entreprise. Les produits soutiendront la stratégie de mise sur le marché de BolaWrap et de l'écosystème connecté de Managed Safety and Response (MSR), renforceront ses initiatives Made-in-America, établiront une présence à Washington, DC, et amélioreront les programmes de formation et de soutien aux clients.
La majorité de l'investissement provient d'insiders et d'investisseurs existants, les titres étant offerts en vertu de la section 4(a)(2) de la loi sur les valeurs mobilières et de la règle 506 du règlement D, exemptés des exigences d'enregistrement.
Wrap Technologies (NASDAQ: WRAP) hat eine private Platzierung in Höhe von 5,8 Millionen Dollar durch den Verkauf von Wertpapieren an angeschlossene Investmentpartnerschaften und institutionelle Investoren gesichert. Der Deal umfasst 3.216.666 Stammaktien zu je 1,80 Dollar pro Aktie sowie begleitende Warrants zum Kauf einer gleichen Anzahl von Aktien, die zu einem Preis von 1,80 Dollar pro Aktie mit einer Laufzeit von fünf Jahren ausgeübt werden können.
Die private Platzierung, die voraussichtlich um den 28. Februar 2025 abgeschlossen wird, wird hauptsächlich zur Finanzierung des Betriebskapitals und allgemeiner Unternehmenszwecke verwendet. Die Erlöse werden die Markteinführungsstrategie für BolaWrap und das Managed Safety and Response (MSR) Connected Ecosystem unterstützen, die Made-in-America-Initiativen stärken, eine Präsenz in Washington, DC, aufbauen und Schulungs- sowie Kundenunterstützungsprogramme verbessern.
Die Mehrheit der Investitionen stammt von Insidern und bestehenden Investoren, wobei die Wertpapiere gemäß Abschnitt 4(a)(2) des Securities Act und Regel 506 der Regulation D angeboten werden, die von den Registrierungsanforderungen befreit sind.
- 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
- 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
Insights
The $5.8M private placement reveals both opportunities and challenges for Wrap Technologies. The pricing at $1.80 per share represents a
Several strategic elements deserve attention: First, the significant insider participation signals management's confidence in the company's direction, though it also indicates potential challenges in attracting purely external capital. The warrant structure, matching the share price without premium, provides additional future funding potential of another
The dilution impact is notable - the 3.2M new shares represent approximately
The focus on BolaWrap and MSR Connected Ecosystem expansion, coupled with the emphasis on Made-in-America solutions, positions the company well for government contracts, particularly given the planned Washington, DC presence. The training and customer support investments are important for product adoption and recurring revenue generation.
Key risks to monitor include:
- Execution capability with the new capital
- Potential future dilution if additional funding needs arise
- Market adoption rate of BolaWrap technology
- Competition in the law enforcement technology space
The financing structure, while dilutive, provides necessary growth capital while maintaining strategic flexibility. The insider participation and warrant coverage suggest a balanced approach to fundraising, though careful monitoring of capital deployment efficiency will be important for long-term value creation.
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
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