Wrap Technologies, Inc. Announces the Closing of a $10 Million Offering to Fuel Growth
Investors Bolster Support in Public Safety Technology, Boosting Cash Reserves to Over $20M through Equity Transaction
TEMPE, Ariz., July 06, 2023 (GLOBE NEWSWIRE) -- Wrap Technologies (Nasdaq: WRAP) ("Wrap" or the "Company"), a global pioneer in innovative public safety solutions, announced the closing of its previously announced registered direct offering of convertible preferred stock and warrants pursuant to a securities purchase agreement with a founder and director of the Company and certain accredited and institutional investors. The gross proceeds of the offering were approximately $10 million.
The securities purchase agreement provided for the sale of preferred stock with a conversion price of $1.45 per share, subject to adjustment, and warrants to acquire up to an aggregate amount of 6,896,553 additional shares of the Company's common stock. The preferred stock has a stated value of $1,000 per share, and holders thereof are entitled to cumulative dividends of 8% per annum on the stated value, payable quarterly in arrears. The warrants are exercisable six months after issuance at an exercise price of $1.45 per share, subject to adjustment, and expire five years from the date of issuance. The preferred stock conversion price and warrant exercise price of $1.45 per share represent the closing share price on June 29, 2023.
Wrap engaged Katalyst Securities LLC to serve as placement agent for the Company in connection with the offering.
"We are extremely encouraged by the unwavering support from our significant shareholders and our founder, which unequivocally demonstrates a deep-seated belief in our vision," said Kevin Mullins, Chief Executive Officer of Wrap. "This successful capital raise is a testament to our solid track record and the promising outlook we envision for Wrap Technologies. We believe this funding serves as a significant steppingstone in our journey of innovation and growth."
The company expects this influx of capital to effectively equip Wrap Technologies to elevate and expedite its growth strategies, fully realizing its overarching ambition to usher in a new era of no-harm inspired public safety solutions. Wrap's strategic blueprint is geared towards empowering law enforcement agencies while safeguarding citizens, and this financing has the potential to be a pivotal step in realizing this vision on an amplified scale.
The substantial net proceeds, amounting to approximately $9 million, present a golden opportunity to fortify Wrap's enterprise. The Company intends to allocate these funds to scale the Company's sales team, supercharge marketing efforts, and fuel the evolution and diversification of Wrap's product offerings. This is more than just funding - it's an investment into a transformative trajectory that strengthens Wrap's mission and empowers Wrap to reach new heights in providing innovative, effective, and socially responsible solutions.
Mr. Mullins continued, "We are focused on pioneering, non-lethal technologies that promote safer and more effective interactions between law enforcement and the communities they serve. As we embark on this exciting new phase, our commitment is to leverage this capital to continue our trajectory of innovative growth, accelerate our research and development initiatives, and expand our global footprint. We recognize that our growth isn't just about us as a company - it's about transforming the landscape of public safety and building a more secure future.
"Wrap Technologies has always been about delivering meaningful solutions. With this new investment, we believe more than ever before that our future is bright and our potential is limitless," Mr. Mullins concluded.
Click here for more information about the deal terms. See also our Current Report on Form 8-K filed with the Securities and Exchange Commission on July 5, 2023. To learn more about Wrap Technologies and their public safety solutions, please visit www.wrap.com.
The securities described above were offered and sold by Wrap in a registered direct offering pursuant to a "shelf" registration statement on Form S-3 (Registration No. 333-260612), including a base prospectus previously filed with the Securities and Exchange Commission (the "SEC") and declared effective by the SEC on November 12, 2021. The offering of such securities was made only by means of a prospectus supplement that forms a part of the registration statement. A final prospectus supplement and base prospectus relating to the registered direct offering were filed with the SEC and are available on the SEC's website located at www.sec.gov. Electronic copies of the prospectus supplement and the accompanying base prospectus may also be obtained by contacting Katalyst Securities LLC at 655 Third Avenue, 18th Floor, New York, NY 10017, or by phone at 212-400-6993.
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 such state or jurisdiction.
About Wrap |
