Hedge funds are buying these two big tech stocks while selling two rivals
MIAMI - Wrap Technologies, Inc. (NASDAQ:WRAP), whose stock has seen a 69% surge over the past six months despite an 11.8% decline last week, announced Tuesday it has completed Stage One of Phase II testing for its Project MERLIN-1 modular aerial defense system, according to a company press release. According to InvestingPro data, the company maintains strong liquidity with assets well exceeding short-term obligations.
The tests, conducted at the company's manufacturing facility in Norton, Virginia, and a test range in Raleigh, North Carolina, validated design specifications including housing size, remote flight capabilities, fixed control deployments, recoil measurements, and payload integration.
"We believe the tests suggest that our MERLIN housing unit is reliable and reusable," said Mike Brown, Vice President of Product at Wrap. "With our successful Stage One tests, we believe Wrap is ready for Stage Two, fully remote flight and fully remote fire control testing."
Project MERLIN builds on the company's BolaWrap tether technology, which uses non-lethal entanglement methods. The initiative follows Phase I trials completed in August 2025 that demonstrated the viability of tethered entanglement technology for surface-to-air applications.
The company aims to extend its technology into counter unmanned aerial systems (CUAS) and unmanned aerial systems (UAS) markets for law enforcement, public safety, and defense sectors.
Braden Frame, Chief Commercial Officer at Wrap, stated the company is focused on "translating these early R&D engineering successes into commercially viable solutions" manufactured at its Virginia facility.
Wrap Technologies specializes in non-lethal public safety technologies, including the BolaWrap 150 device, WrapReality training platform, and WrapVision body-worn camera system.
In other recent news, Wrap Technologies has been actively involved in several strategic developments. The company announced a new partnership with Carahsoft Technology Corp., aiming to distribute its public safety solutions to government agencies through Carahsoft's reseller network and procurement contracts. This agreement positions Carahsoft as Wrap's Master Government Aggregator, facilitating access to Wrap's subscription services for the public sector. Additionally, the Le Sueur Police Department in Minnesota has initiated a two-year study with Wrap Technologies to evaluate the impact of its BolaWrap 150 devices and training program on law enforcement metrics.
Wrap Technologies also made significant leadership appointments, naming Braden Frame as Chief Commercial Officer and Joseph Cameron as Chief Revenue Officer. Frame will oversee marketing and product strategy, while Cameron brings extensive law enforcement experience to his new role. Furthermore, the company has submitted its counter-drone system, Project Merlin-1KC, for the U.S. Army's xTechCounter Strike competition. This system aims to disable hostile drones using tethered projectiles, offering a non-electronic warfare solution.
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