Wrap Technologies raises $10M via convertible preferred stock and warrants

WRAP TECHNOLOGIES, INC.

Gross proceeds of $10M from sale of 10,000 Series A Convertible Preferred shares (stated value $1,000) and warrants for 6,896,553 common shares.
Conversion/exercise price set at $1.45 per share, equal to June 29 closing price; warrants exercisable after 6 months, expire in 5 years.
Preferred shares carry 8% annual cumulative dividend, payable quarterly; closing expected July 3, 2023, subject to customary conditions.
Net proceeds to be used for general corporate purposes; stockholder meeting required by Oct 1, 2023 to approve issuance of shares above 19.99% limit.
Directors and certain accredited/institutional investors participated; Katalyst Securities served as placement agent with 8% cash fee and warrants.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

WRAP TECHNOLOGIES, INC. entered into Securities Purchase Agreement with certain directors of the Company and certain accredited and institutional investors valued at $10 million (effective 2023-06-29).

Action: entry
Agreement: equity purchase
Counterparty: certain directors of the Company and certain accredited and institutional investors
Value: $10 million
Effective: 2023-06-29

Exact text from the filing

On June 29, 2023, Wrap Technologies, Inc. (the “Company”) entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain directors of the Company and certain accredited and institutional investors (collectively, the “Investors”), pursuant to which it agreed to sell to the Investors in a registered direct offering (the “Offering”) (i) an aggregate of 10,000 shares of the Company’s newly-designated Series A Convertible Preferred Stock, with par value $0.0001 per share and a stated value of $1,000 per share, initially convertible into up to 6,896,553 shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), at a conversion price of $1.45 per share (the “Preferred Shares”), and (ii) warrants to acquire up to an aggregate of 6,896,553 shares of Common Stock (the “Warrants”).

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Source: SEC EDGAR

accession 0001437749-23-019053

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