Polar Power has entered into a Committed Equity Facility with Roth Principal Investments, LLC, an affiliate of CR Financial Holdings, Inc. The facility allows Polar Power to issue and sell up to $25 million of common stock at its discretion, subject to the filing and effectiveness of a registration statement covering the resale of the shares and other conditions set forth in the agreement.
Polar Power intends to use net proceeds for working capital and general corporate purposes, including growth of its DC power systems business, which has expanded well beyond its original telecommunications and military applications into charging systems for drones, micro/nano grids, EV charging, robotics, and data center power and cooling solutions. The company said it may access capital opportunistically over time and is under no obligation to draw on the full amount available under the facility, and that actual usage will depend on market conditions and the company’s evolving capital needs.
Sales under the facility, if any, are expected to be made at prices based on the prevailing market price of the common stock at the time of sale. The company noted that such sales, together with the resale of shares by Roth Principal Investments, may be dilutive to existing stockholders, and that limitations including the number of shares registered for resale and applicable Nasdaq rules could constrain how much of the $25 million Polar Power is ultimately able to access.
KEY QUOTE:
“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.”
Arthur D. Sams, President and CEO, Polar Power, Inc.
