Wrap Technologies Inc. said on Tuesday it priced a $12 million stock offering at $1.40 per share. The offering will issue approximately 8.57 million shares, according to a regulatory filing.
The company, which provides body-worn camera and public safety technology, said the net proceeds will be used for working capital, general corporate purposes and potential acquisitions. Wrap Technologies did not disclose the underwriters or placement agents involved in the transaction.
The stock offering follows a period of volatility for the company’s shares, which have traded below $2 for much of the past year. The new shares will dilute existing shareholders, though the company did not specify the exact impact on ownership stakes.
Wrap Technologies reported a net loss of $10.2 million for the nine months ended Sept. 30, 2024, widening from a $6.8 million loss in the same period a year earlier. Revenue declined 12% to $13.4 million during the period, reflecting softer demand in its core public safety segment.
The company has faced challenges in scaling its operations amid competitive pressure in the body-worn camera market. Management has emphasized cost controls and strategic partnerships to improve profitability.
