Wrap Technologies (NASDAQ:WRAP) (“Wrap” or the “Company”), a global pioneer in innovative public safety solutions, announced today that it has executed a securities purchase agreement with certain directors of the Company and certain accredited and institutional investors to raise gross proceeds of approximately $10 million in a registered direct offering of convertible preferred stock and warrants. The offering is expected to close on July 3, 2023, subject to the satisfaction of customary closing conditions.
The securities purchase agreement provides 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 will have a stated value of $1,000 per share, and holders thereof will be 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.
