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MIAMI - Wrap Technologies, Inc. (NASDAQ:WRAP) announced Monday it has executed a securities purchase agreement with institutional investors for a $4.5 million private placement to advance its counter-drone technology programs and expand its law enforcement offerings. The company, currently valued at $77.76 million, has seen its stock surge 17.69% over the past week, according to InvestingPro data.
The private placement consists of 4,500 shares of Series B Preferred Stock convertible into 3 million common shares at $1.50 per share, along with warrants to purchase an additional 3 million shares. The warrants will have an exercise price of $1.50 per share and will expire five years from the date of stockholder approval.
The transaction is expected to close around August 19, pending customary closing conditions. Both the conversion of preferred stock and exercise of warrants are subject to stockholder approval.
According to the company’s statement, proceeds will support Wrap’s recently announced counter-drone programs, Wrap-Merlin and Wrap-PANDA, which repurpose existing BolaWrap 150 inventory for counter-unmanned aerial systems applications. The funding will also strengthen the company’s law enforcement initiatives, including subscription-based solutions and expansion of its WrapVision body camera offering.
Wrap Technologies specializes in non-lethal tools for law enforcement, with its flagship BolaWrap 150 device deployed by over 1,000 agencies across the U.S. and in 60 countries. While the company maintains a strong liquidity position with a current ratio of 5.65 and operates with moderate debt levels, InvestingPro analysis reveals it is not yet profitable, with revenue of $3.24 million in the last twelve months.
The securities were offered in a transaction exempt from registration requirements under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D. The company has agreed to file a resale registration statement covering the securities.
Wrap Technologies indicated it will use the net proceeds for working capital and general corporate purposes. Despite a challenging six-month period that saw the stock decline by 35.17%, the company’s financial metrics and growth potential are thoroughly analyzed in the comprehensive Pro Research Report, available exclusively on InvestingPro, along with 7 additional key insights about the company’s financial health and market position.
In other recent news, Wrap Technologies Inc. announced its Q2 2025 earnings, revealing a strategic focus on new product offerings and cost reductions. The company reported a negative earnings per share (EPS) of -0.07 USD. Revenue for the quarter was 1,000,000 USD, reflecting significant improvements in operating efficiency and liquidity. These developments come as Wrap Technologies aims to enhance its market position through strategic growth initiatives. The company’s recent earnings report highlights its efforts to streamline operations and focus on core business areas. Despite the negative EPS, the company has shown progress in its financial metrics. Investors and analysts will be closely monitoring how these strategic pivots impact Wrap Technologies’ future performance.
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