Wrap announces $12.4 million financing led by existing investors
TEMPE, Ariz.,– Wrap Technologies, Inc. (the “Company” or “Wrap”) (Nasdaq: WRTC), an innovator of modern policing solutions, announced today that it has entered into subscription agreements for the sale of 2,066,667 units (each, a “Unit”) at a price of $6.00 per Unit in a registered direct public offering resulting in gross proceeds of $12.4 million before advisory fees and other offering expenses.
The Company plans to use the cash proceeds to scale engineering, product development and to provide working capital to meet worldwide demand for BolaWrap products and accessories.
“We are very pleased with the support of our existing investors in this funding,” said David Norris, CEO of Wrap Technologies. “We believe the challenges of non-contact policing create opportunities for us to accelerate our product development to meet growing needs of both domestic and international law enforcement agencies.”
Each Unit consists of one share of the Company’s common stock and one common stock purchase Warrant, entitling the holder to purchase an additional common share at a price of $6.00 per share for a period of 24 months. The sale and issuance of the shares and warrants is expected to close on or before June 2, 2020, subject to customary closing conditions. Katalyst Securities LLC is acting as an advisory financial consultant to the Company.
The sale and issuance of the units is being made pursuant to the Company’s effective shelf registration statement on Form S-3 (File No. 333-228974), which was filed with the Securities and Exchange Commission on December 21, 2018 and was declared effective on February 14, 2019. The prospectus supplement and the accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC's website at http://www.sec.gov.
About Wrap Technologies (WRTC)
Wrap Technologies is an innovator of modern policing solutions. The Company's BolaWrap 100 product is a patented, hand-held remote restraint device that discharges an eight-foot bola style Kevlar® tether to entangle an individual at a range of 10-25 feet. Developed by award winning inventor Elwood Norris, the Company's Chief Technology Officer, the small but powerful BolaWrap 100 assists law enforcement to safely and effectively control encounters, especially those involving an individual experiencing a mental crisis. For information on the Company please visit www.wraptechnologies.com. Examples of recent media coverage are available as links under the "Media" tab of the website.