Wrap Technologies Inc. has entered into a Securities Purchase Agreement with Frenel Imaging Ltd., acquiring 74,918 Series A Preferred Shares for $2M. This strategic investment, priced at $26.7 per share, strengthens the partnership between the two entities. The transaction, finalized on July 7, 2026, supports the integration of Frenel's physics-based sensing technology into WrapShield, Wrap Technologies' counter-unmanned aircraft system (UAS) platform.

The acquisition aims to enhance threat detection capabilities for public safety agencies. Consumer-grade drones have fundamentally altered the risk landscape, with incidents ranging from narcotics trafficking against federal border agents to drone-dropped contraband in prisons. The technology is designed to detect threats earlier, orchestrate responses, and act with proportionate, mission-appropriate action.

Wrap Technologies' portfolio supports this platform approach with a range of products. The BolaWrap 150 provides non-lethal restraint, while Wrap Reality offers immersive training and WrapVision serves as a body-worn camera system. The company also provides next-generation C-UAS solutions such as PAN-DA and the 1KC Kinetic Anti-Drone Cassette.

Operational momentum is evident through expanding customer adoption. The BolaWrap 150 is currently used by more than 1,000 agencies across the United States and in 60 additional countries. Looking ahead, the company is focused on disciplined capital allocation and targeted investments in technologies that support its long-term strategy.

Wrap Technologies, Inc. has entered the third quarter of 2026 with international orders totaling approximately $1.2 million from customers in Brazil and India, providing an early commercial foundation for the period. The orders, placed by distributors on behalf of two public safety agencies in Brazil and an additional distributor in India, underscore continued adoption of the BolaWrap 150 and reflect growing worldwide demand for the company’s non-lethal public safety technologies. Management believes the repeat purchasing activity indicates customers are moving beyond initial evaluations to expand deployments following operational experience with the product.

Landmark ATF Ruling Removes Regulatory Barrier

On June 15, 2026, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) issued Ruling 2026-2, formally classifying the BolaWrap 150 as an instrument of restraint rather than a firearm or an "any other weapon" (AOW). This ruling supersedes prior ATF classifications and, in management’s view, removes a longstanding federal classification that previously complicated procurement, distribution, and adoption in certain markets. Following the ruling, WRAP has experienced increased interest from both domestic and international customers, which management believes could represent an important catalyst for future adoption.

International Commercial Momentum

Brazil has emerged as one of WRAP’s fastest-growing international markets, with recent follow-on orders supporting broader deployment across multiple public safety agencies. In India, a distributor order booked to open the third quarter establishes a commercial foothold in one of the world’s largest public safety markets. WRAP continues to build its international channel through experienced regional partners that provide localized sales, training, deployment, and long-term customer support.

2026 Growth Outlook

Wrap Technologies reaffirmed its previously stated target of approximately 100% year-over-year revenue growth in 2026. This outlook reflects management’s current expectations regarding international adoption, repeat customer activity, improving regulatory conditions, and a growing commercial pipeline.

"We are entering the third quarter with meaningful commercial momentum already in place," said Scot Cohen, Chief Executive Officer of WRAP. "Opening the quarter with significant international orders is encouraging on its own, but what matters more is what those orders represent — repeat customers expanding their deployments and new markets adopting our technology, independent of the additional interest generated by the ATF’s decision."