In a recent filing with the Securities and Exchange Commission, Wrap Technologies (NASDAQ:WRAP), Inc. announced significant amendments to the rights of its security holders and changes to its preferred stock.
The company, known for its involvement in ordnance and accessories manufacturing and currently valued at $81.67 million in market capitalization, has filed the Certificate of Amendment with the Secretary of State of Delaware, effective as of December 6, 2024. According to InvestingPro data, the company operates with a moderate debt-to-equity ratio of 0.34, suggesting a relatively stable financial structure.
The amendments stem from a Securities Purchase Agreement dated June 29, 2023, involving Series A Convertible Preferred Stock and warrants to purchase common stock. Following an agreement with Series A Investors on November 25, 2024, Wrap Technologies agreed to amend the Certificate of Designations of the Series A Preferred Stock. This amendment stipulates that in the event of a Triggering Event as defined in the Certificate of Designations, the Series A Preferred Stock will now accrue dividends at a compounded monthly rate of 20% per annum.
Furthermore, the Amendment Agreement clarifies that all accrued and unpaid amounts as of November 25, 2024, will be settled through the delivery of common stock shares to the Series A Investors. The specific number of shares to be received by each investor is detailed in the Amendment Agreement.
The Certificate of Amendment and the Amendment Agreement are available for review in their entirety as filed exhibits to the company's Form 8-K. This move by Wrap Technologies could be indicative of a strategic adjustment to its financial structure, as it alters the terms under which the Series A Preferred Stock operates.
The company's common stock, listed on the Nasdaq Capital Market under the ticker WRAP, may see investor reactions to these changes. Currently trading at $1.79, the stock has shown strong momentum with a 32.37% gain over the past six months, despite facing challenges with a 53.65% year-over-year revenue decline.
InvestingPro analysis reveals 8 additional key insights about WRAP's financial health and market position, available to subscribers.Wrap Technologies, incorporated in Delaware and based in Tempe, Arizona, has not disclosed any additional information regarding the potential implications of these modifications for investors or the company's overall financial strategy.
For comprehensive analysis of WRAP's financial metrics and future potential, investors can access detailed valuation models and expert insights through InvestingPro.
This article is based on a press release statement filed with the SEC.
In other recent news, Wrap Technologies has reported some significant developments. The company has announced a preliminary revenue of $6.1 million for FY-23 and anticipates a 54.7% increase in revenue for the first quarter of 2024. Additionally, Wrap Technologies has amended its Series A Convertible Preferred Stock terms, increasing the dividend rate to 20% per annum and stipulating that all accrued and unpaid amounts will be settled in shares of common stock.
The company has also made strides in its operations by opening a new manufacturing and distribution center in Virginia, a move expected to create over 120 local jobs. This expansion is in collaboration with the Virginia Economic Development Partnership. In other developments, Wrap Technologies has integrated 60 of its BolaWrap devices into the San Francisco Police Department's Field Training/Force Options Unit.
Furthermore, the company has faced compliance issues with the Nasdaq Stock Market due to delays in filing its Annual Report and Quarterly Report. In response, Wrap Technologies has submitted a compliance plan. The company's board also saw a change with the resignation of board member Kevin Mullins. Lastly, Wrap Technologies has set a deadline for 2024 shareholder proposals and director nominations, inviting shareholders to participate in the company's governance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.