Business
Wrap Announces Closing of $12.4 Million Financing
Founder Elwood Norris Joins Other Shareholders to Exercise Over $4.1 Million of Outstanding WarrantsTEMPE, AZ / ACCESSWIRE / June 4, 2020 / Wrap Technologies,
About this update from Wrap Technologies, Inc.
[{"type":"text","content":"Founder Elwood Norris Joins Other Shareholders to Exercise Over $4.1 Million of Outstanding WarrantsTEMPE, AZ / ACCESSWIRE / June 4, 2020 / Wrap Technologies, Inc. (the \"Company\" or \"Wrap\") (NASDAQ:WRTC), an innovator of modern policing solutions, today announced the closing of its previously announced $12.4 million financing. The financing was led by existing investors. The Company intends to use net proceeds to scale engineering, product development and to provide working capital to meet worldwide demand for BolaWrap products and accessories.The Company also announced that its founder and largest shareholder Elwood Norris exercised 100,000 outstanding warrants at $5.00 per share for cash of $500,000. Other investors also recently exercised 2018 warrants that, including Mr. Norris' new investment, has provided over $4.1 million of additional working capital to the Company. The Company currently has over $30.0 million cash on hand after these transactions.\"I am very pleased that we have the resources to innovate new products to assist law enforcement to meet the demands of modern policing,\" said Elwood Norris, Chief Technology Officer of Wrap Technologies. \"We are a dedicated pioneer of essential new innovations working with talented firms and a growing internal research team.\"In the registered direct offering the Company sold 2,066,667 units (each, a \"Unit\") at a price of $6.00 per Unit. Each Unit consists of one share of common stock of the Company and one common stock purchase warrant entitling the holder to purchase an additional common share at an exercise price of $6.00 per share for a period of 24 months.The sale and issuance of the securities was made by the Company pursuant to a registration statement on Form S-3 (File No. 333-228974), previously filed with and subsequently declared effective by the Securities and Exchange Commission on February 14, 2019. A prospectus supplement and accompanying base prospectus relating to the shares of common stock sold and shares of common stock underlying the warrants issued was filed with the SEC on June 1, 2020. Copies of the prospectus supplement and accompanying base prospectus may be obtained on the SEC's website at http://www.sec.gov.Katalyst Securities LLC acted as a financial consultant to the Company in connection with the offering.This press release shall not cons...