Wrap Technologies creates Series B preferred stock and warrants in private placement

Published 26/08/2025, 21:36
Wrap Technologies creates Series B preferred stock and warrants in private placement

Wrap Technologies, Inc. (NASDAQ:WRAP), a small-cap technology company with a market capitalization of $68.35 million, announced the creation of a new Series B Convertible Preferred Stock following a private placement agreement with accredited investors. According to a press release statement based on a filing with the Securities and Exchange Commission, the company entered into a Securities Purchase Agreement on August 18, 2025, to sell 4,500 shares of the newly designated Series B Convertible Preferred Stock at a par value of $0.0001 per share and a stated value of $1,000 per share. InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 5.65.

The Series B Preferred Stock is initially convertible into up to 3,000,000 shares of Wrap Technologies’ common stock at a conversion price of $1.50 per share. The agreement also includes warrants to purchase up to 3,000,000 shares of common stock, also at an initial exercise price of $1.50 per share. Both the conversion of the preferred stock and the exercise of the warrants are subject to obtaining the required stockholder approval.

On August 20, 2025, the company filed the Certificate of Designations for the Series B Preferred Stock with the Secretary of State of Delaware, making the designation effective. The terms of the Series B Preferred Stock are detailed in the Certificate of Designations, which is included as an exhibit in the SEC filing. For investors seeking deeper insights, InvestingPro offers comprehensive analysis of WRAP’s financial health, including additional ProTips and detailed metrics in its Pro Research Report, available exclusively to subscribers.

Wrap Technologies’ common stock continues to be listed on the Nasdaq Capital Market under the symbol WRAP. The filing did not report any changes to the company’s fiscal year or other amendments to its articles of incorporation beyond the designation of the Series B Preferred Stock.

This summary is based on a press release statement included in the company’s SEC filing.

In other recent news, Wrap Technologies reported its Q2 2025 earnings, revealing a negative earnings per share of -0.07 USD and a revenue of 1,000,000 USD. The company emphasized strategic growth through new product offerings and cost reductions, which were highlighted during their earnings call. Additionally, Wrap Technologies announced a $4.5 million private placement with institutional investors to further develop its counter-drone technology and expand its law enforcement offerings. This agreement involves the issuance of Series B Preferred Stock, convertible into common shares, along with warrants for additional shares. Furthermore, the company launched WrapTactics, a subscription-based digital learning platform aimed at preventing skill degradation among law enforcement officers. This platform focuses on maintaining critical policing skills, which research indicates can decline rapidly without regular reinforcement. These recent developments reflect Wrap Technologies’ ongoing efforts to innovate and expand its market presence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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