Wrap Technologies Enters Agreement to Amend Series A Preferred Stock Terms

Wrap Technologies, Inc. recently announced that it has entered into an Amendment and Agreement with certain investors regarding its Series A Preferred Stock. The company had initially entered into a Securities Purchase Agreement on June 29, 2023, with directors and accredited investors, agreeing to sell shares of Series A Convertible Preferred Stock and warrants to purchase common stock.

On November 25, 2024, an Amendment Agreement was reached, where the investors agreed to amend the Certificate of Designations by filing a Certificate of Amendment. As per the agreement, all unpaid amounts as of November 25, 2024, will be settled by delivering shares of Common Stock to the investors. A Triggering Event will now cause the Series A Preferred Stock to accrue dividends compounded monthly at a rate of 20% per annum.

The details of the Amendment Agreement and the Certificate of Amendment can be found in documents filed with the Securities and Exchange Commission in Exhibit 10.1 and Exhibit 3.1, respectively, to the Current Report on Form 8-K.

This modification represents a material change to the rights of security holders and is documented in Item 3.03 of the Form 8-K filing. Additionally, it implicates amendments to the Articles of Incorporation or Bylaws and is reflected in Item 5.03 of the filing.

Furthermore, the company disclosed information regarding the financial aspects of the agreement in the Form 8-K, including details on the equity financing with strategic shareholder JuvVentures, as presented in Exhibit 99.1.

It is essential to note that following these agreements, the exchange will see 1 million common shares issued at $10 per share, representing a 120% premium to the closing price on November 26, 2024. The financing is structured to be delivered in two parts, with the first $5.0 million tranche received on November 27, 2024, and the second $5.0 million tranche expected by January 31, 2025.

Such strategic transactions and amendments play a crucial role in shaping the financial landscape for Wrap Technologies as it progresses with its recent agreements and amendments.

For more detailed information, interested parties can refer to the official documents submitted to the SEC.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Wrap Technologies’s 8K filing here.

About Wrap Technologies

Wrap Technologies, Inc operates as a development stage security technology company. It focuses on delivering solutions to customers, primarily law enforcement and security personnel. The firm products includes BolaWrap 100, which is a 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.