Polar Power Secures Up to \$25 Million Committed Equity Facility to Fuel Expansion
Key Highlights
- Polar Power, Inc. (NASDAQ: POLA) has entered into a Committed Equity Facility (CEF) with Roth Principal Investments, LLC (RPI), an affiliate of CR Financial Holdings, Inc., the holding company for Roth Capital Partners.
- The CEF enables Polar Power to issue and sell up to \$25 million of common stock to RPI, at the company’s discretion, subject to certain conditions and after the filing and effectiveness of a registration statement.
- Proceeds from this facility are intended to provide additional working capital to support the ongoing development and growth of Polar Power’s DC power systems business, including expansion into new markets such as data-center power and drone-charging systems.
- There is no obligation for Polar Power to utilize the full facility; capital can be accessed opportunistically over time.
- Sales of stock under the facility are expected to be made at prevailing market prices and may be dilutive to existing shareholders.
Details for Shareholders
- Price-Sensitive: The CEF may result in material dilution for current shareholders if Polar Power utilizes it to sell new shares, as the sales will occur at market prices and the shares will then be resold by RPI. This could create additional downward pressure on the stock price, especially if large volumes are issued over a short period.
- Share Issuance Limitations: Polar Power may not be able to sell the full \$25 million due to limitations such as the number of shares registered for resale and compliance with Nasdaq rules.
- Use of Proceeds: The capital raised is earmarked for working capital and general corporate purposes, specifically the further development of its DC power systems and growth into new sectors including data centers, drone charging, EV charging, robotics, and micro/nano grids.
- Regulatory Requirements: The company must file a registration statement with the SEC to register the resale of the shares to be issued under the CEF. No sales can occur until this registration statement is both filed and declared effective.
- Forward-Looking Statements: The announcement emphasizes that all forward-looking statements are subject to risks and uncertainties, including the company’s ability to sell its DC power systems and fully utilize the CEF. Shareholders are advised to review the company’s SEC filings for a fuller understanding of associated risks.
Management Commentary
“We are pleased to have entered into this Committed Equity Facility, which is intended to provide additional financial and working capital flexibility to support the continued growth of our DC power systems business. Building on our proven DC power technology, we have expanded into new markets—including charging systems for drones, micro/nano grids, EV charging, robotics, and power and cooling solutions for data centers—and this facility is intended to provide added flexibility to pursue these markets,” stated Arthur D. Sams, President and CEO of Polar Power.
About Polar Power, Inc.
Polar Power, Inc. designs, manufactures, and sells direct current (DC) power systems for telecommunications, military, automotive, industrial, and other applications. The company’s systems are recognized for providing reliable and low-maintenance prime and backup power. Polar Power is actively expanding its product portfolio to meet the growing needs of data centers and drone charging infrastructure.
For more information, visit www.polarpower.com.
Investor Contacts
Arthur D. Sams, President and CEO
Polar Power, Inc.
Phone: (310) 830-9153
Email: [email protected]
Disclaimer
This article contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those projected. Investors should review all relevant filings and consult their financial advisor before making investment decisions. This is not an offer or solicitation to buy or sell securities in any jurisdiction.
