Polar Power, Inc. announced that its CEO, Arthur Sams, entered into an exchange agreement to convert $614,700 in promissory notes (principal and accrued interest) owed to him into equity. This transaction aims to strengthen the company's balance sheet and support its efforts to maintain Nasdaq listing compliance.
Key Details
- Agreement: On September 25, 2026, CEO Arthur Sams surrendered $614,700 in promissory notes in exchange for 683 shares of Series A Convertible Preferred Stock and a warrant.
- Warrant Terms: The warrant allows the purchase of 382,276 shares of common stock at an exercise price of $1.34 per share and is exercisable for three years.
- Preferred Stock Terms: The Series A Preferred Stock has a stated value of $1,000 per share, accrues a 10% annual dividend, and is convertible into common stock.
- Stated Purpose: The transaction is intended to eliminate debt, increase shareholders' equity, and support efforts to maintain compliance with Nasdaq's continued listing requirements.