Exhibit
23.1
February 12, 2019
Wrap Technologies, Inc.
4620 Arville Street, Suite E
Las
Vegas, Nevada 89103
Re: Registration Statement on Form
S-3
Ladies and Gentlemen:
We are acting as counsel
for Wrap
Technologies, Inc., a Delaware corporation (the
“Company”),
in connection with the filing of a Registration Statement
on Form S-3 relating to the registration under the
Securities Act of 1933 (the “Act”)
of the following securities of the Company having an aggregate
initial public offering price of up to $75,000,000: (i) shares
(the “Company
Shares”)
of common stock, par value $0.0001 per share
(“Common
Stock”),
(ii) shares of preferred stock, par value $0.0001 per share
(“Preferred
Stock”),
in one or more series, (iii) warrants to purchase Common Stock
(“Warrants”),
and (iv) units consisting of two or more of the Securities (as
defined below) (“Units”).
The Company Shares, Preferred Stock, Warrants and Units are
collectively referred to herein as the “Securities.”
The Securities shall include any additional amounts of such
securities the offer and sale of which are registered pursuant to a
registration statement filed pursuant to Rule 462(b) under the Act
in connection with one or more offerings contemplated by such
Registration Statement. Such Registration Statement, as amended,
and including any registration statement related thereto and filed
pursuant to Rule 462(b) under the Act, is herein referred to
as the “Registration
Statement.”
The Securities may be offered and sold from time
to time by the Company as set forth in the Registration Statement,
the prospectus contained within the Registration Statement (the
“Prospectus”), and supplements to the Prospectus (each,
a “Prospectus
Supplement”). The
Warrants may be issued under one or more warrant agreements (each,
a “Warrant
Agreement”) by and
between the Company and a bank or trust company to be identified
therein as warrant agent. The Units may be issued under one or more
unit agreements (each, a “Unit
Agreement”) between the
Company and a third party to be identified therein as unit agent.
Each Warrant Agreement and each Unit Agreement are herein
collectively called the “Agreements.”
We
have reviewed the Registration Statement and such other agreements,
documents, records, certificates and other materials, and have
reviewed and are familiar with such corporate proceedings and
satisfied ourselves as to such other matters, as we have considered
relevant or necessary as a basis for this opinion. In such review,
we have assumed the accuracy and completeness of all agreements,
documents, records, certificates and other materials submitted to
us, the conformity with the originals of all such materials
submitted to us as copies (whether or not certified and including
facsimiles), the authenticity of the originals of such materials
and all materials submitted to us as originals, the genuineness of
all signatures and the legal capacity of all natural
persons.
On
the basis of the assumptions and subject to the qualifications and
limitations set forth herein, we are of the opinion
that:
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1.
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When an issuance of Common Stock has been duly authorized by all
necessary corporate action of the Company, upon issuance, delivery
and payment therefor in an amount not less than the par value
thereof in the manner contemplated by the Registration Statement
and/or the Prospectus and related Prospectus Supplement(s) and by
such corporate action, such shares of Common Stock will be validly
issued, fully paid and nonassessable.
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2.
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With
respect to the Preferred Stock, when (a) the Company’s Board
of Directors (“Board”) has taken all necessary
corporate action to approve the issuance and establish the terms of
any particular series of Preferred Stock, the offering thereof and
related matters, including the filing of a certificate of
designations conforming to the General Corporation Law of the State
of Delaware regarding such series of Preferred Stock with the
Delaware Division of Corporations and (b) shares of such series of
Preferred Stock have been issued and sold by the Company in the
manner contemplated by the Registration Statement and in accordance
with such Board action, such shares of such series of Preferred
Stock (including any shares of such series of Preferred Stock duly
issued upon conversion, exchange or exercise of any other Security
in accordance with the terms of such other Security or the
instrument governing such other Security providing for such
conversion, exchange or exercise as approved by the Board) will be
duly authorized, legally issued, fully paid and
nonassessable.
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3.
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When a Warrant Agreement has been duly authorized by all necessary
corporate action of the Company and duly executed and delivered,
and when the specific terms of a particular issuance of Warrants
have been duly established in accordance with such Warrant
Agreement and authorized by all necessary corporate action of the
Company, and the Warrants have been duly executed, authenticated,
issued and delivered against payment therefor in accordance with
such Warrant Agreement and in the manner contemplated by the
Registration Statement and/or the Prospectus and related Prospectus
Supplement(s) and by such corporate action (assuming the securities
issuable upon exercise of the Warrants have been duly authorized
and reserved for issuance by all necessary corporate action), the
Warrants will be legally valid and binding obligations of the
Company, enforceable against the Company in accordance with their
terms.
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4.
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When a Unit Agreement has been duly authorized by all necessary
corporate action of the Company and duly executed and delivered,
and when the specific terms of a particular issuance of Units have
been duly established in accordance with such Unit Agreement and
authorized by all necessary corporate action of the Company, and
the Units have been duly executed, authenticated, issued and
delivered against payment therefor in accordance with such Unit
Agreement and in the manner contemplated by the Registration
Statement and/or the Prospectus and related Prospectus
Supplement(s) and by such corporate action (assuming the
constituent securities of the Units have been duly authorized and
reserved for issuance by all necessary corporate action), the Units
will be legally valid and binding obligations of the Company,
enforceable against the Company in accordance with their
terms.
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Our
opinions set forth above are subject to and limited by the effect
of (a) applicable bankruptcy, insolvency, fraudulent
conveyance, fraudulent transfer, receivership, conservatorship,
arrangement, moratorium and other laws affecting and relating to
the rights of creditors generally, (b) general equitable
principles and (c) general principles of equity, including
without limitation concepts of materiality, reasonableness, good
faith and fair dealing, and the possible unavailability of specific
performance or injunctive relief and limitation of rights of
acceleration, regardless of whether such enforceability is
considered in a proceeding in equity or at law.
In connection with the opinions expressed above,
we have assumed that at or prior to the time of the delivery of any
of the Securities (a) the Registration Statement, and any
amendments thereto (including post-effective amendments), will have
been declared effective under the Act and a Prospectus Supplement
relating to the offer and sale of such Securities to the Prospectus
will have been prepared and filed with the Securities and Exchange
Commission pursuant to Rule 424(b) under the Act, (b) the
Board shall not have rescinded or otherwise modified the
authorization of such Securities, (c) that a definitive purchase,
underwriting or similar agreement, including any Agreements, with
respect to any Securities offered will have been duly authorized
and validly executed and delivered by the Company and the other
parties thereto, (d) that any Securities issuable upon conversion,
exchange, redemption or exercise of any Securities being offered
will be duly authorized, created and, if appropriate, reserved for
issuance upon such conversion, exchange, redemption or exercise,
and (e) neither the establishment of any terms of such
Securities after the date hereof nor the issuance and delivery of,
or the performance of the Company’s obligations under, such
Securities will require any authorization, consent, approval or
license of or exemption from, or registration or filing with, or
report or notice to, any governmental unit, agency, commission,
department or other authority (a “Governmental
Approval”) or violate or
conflict with, result in a breach of, or constitute a default
under, (i) any agreement or instrument to which the Company or
any of its affiliates is a party or by which the Company or any of
its affiliates or any of their respective properties may be bound,
(ii) any Governmental Approval that may be applicable to the
Company or any of its affiliates or any of their respective
properties, (iii) any order, decision, judgment or decree that
may be applicable to the Company or any of its affiliates or any of
their respective properties, or (iv) any applicable law (other
than the Delaware General Corporation Law and the law of the State
of California in each case as in effect on the date
hereof).
The
opinions set forth in this letter are limited to the Delaware
General Corporation Law and the law of the State of California, in
each case as in effect on the date hereof.
We
hereby consent to the filing of this opinion letter as
Exhibit 5.1 to the Registration Statement and to the use of
our name under the caption “Legal Matters” in the
Registration Statement and in the Prospectus forming a part thereof
and any supplement thereto. In giving this consent, we do not
thereby admit that we are within the category of persons whose
consent is required under Section 7 of the Act or the rules
and regulations of the Commission promulgated
thereunder.
Very
truly yours,
/s/ Disclosure Law
Group
Disclosure
Law Group, a Professional Corporation