Polar Power, Inc. entered into a Revolving Loan Agreement with Stone Brothers Capital, providing a revolving credit facility of up to $2.5 million. The agreement includes significant governance changes, requiring the resignation of two board members and the appointment of three new directors designated by the lender.
Key Details
- Financing Terms: The agreement provides for loans up to an aggregate of $2,500,000 at an annual interest rate of 12%. The maturity date is one year from the closing date of the agreement.
- Board Restructuring: As a condition of the loan, directors Keith Albrecht and Katherine Koster resigned from the board, effective May 19, 2026. Three new directors designated by Stone Brothers Capital will be appointed.
- Use of Proceeds: Funds will be used for general corporate purposes, including financing a potential "Qualified Public Equity Offering" for proceeds of up to $6,000,000.