Polar Power, Inc. has entered into a series of material agreements to secure financing and implement a corporate restructuring. The company raised approximately $807,100 in net proceeds through the issuance of convertible notes, engaged a firm to oversee operational and governance changes, and settled a dispute with its landlords, regaining access to its headquarters.
Key Details
- Financing: On May 21, 2026, the company issued two 6% convertible redeemable notes with a 12-month maturity, totaling $970,600 in principal, to CFI Capital and Monroe Street Capital Partners, yielding net proceeds of approximately $807,100. The notes are convertible into common stock after six months at a price equal to 80% of the lowest VWAP over the prior 10 trading days.
- Restructuring Agreement: A services agreement was signed with Mammoth Crest Capital, LLC (MCC) to lead operational, financial, and governance initiatives. In exchange, MCC will appoint two directors to Polar Power's board and will receive $500,000 in fees, a $25,000 monthly retainer, and common stock representing 4.5% of outstanding shares as of the effective date.
- Landlord Settlement: On May 22, 2026, the company entered a new settlement agreement with its landlords, paying a combined $755,000 to resolve disputes and regain access to its headquarters facility, from which it had been evicted on May 19, 2026.