Polar Power CEO Arthur D. Sams agreed to convert $614,700 of company debt into 683 Series A Convertible Preferred shares. This transaction removes the debt from the balance sheet and increases shareholders' equity.
The company initiated the conversion to address a shareholders' equity compliance issue with Nasdaq's continued listing requirements.
Polar Power also issued Mr. Sams a warrant to purchase 382,276 shares of common stock. The warrant features an exercise price of $1.34 per share.