Loan & DebtJul 7, 2026, 05:32 PM
Polar Power Issues $275K Convertible Note to Mayers Ventures
AI Summary
Polar Power, Inc. issued a $275,000 convertible promissory note to Mayers Ventures LLC for a consideration of $250,000. The note carries a 10% annual interest rate, with interest paid in kind, and matures on December 30, 2027. Mayers Ventures has the right to convert the note into common stock at 90% of the lowest 7-day VWAP and can designate one individual for the company's board of directors. The proceeds will be utilized for working capital and general corporate purposes.
Key Highlights
- Issued a convertible promissory note with a principal amount of $275,000 to Mayers Ventures LLC.
- The consideration price for the note was $250,000, reflecting a 10% original issuance discount.
- The note carries an interest rate of 10% per annum, with interest paid in kind (PIK).
- The maturity date for the convertible note is December 30, 2027.
- Mayers Ventures LLC has the right to convert the note into common stock at 90% of the lowest 7-day VWAP.
- Mayers Ventures LLC also gains the right to designate one individual for election to the board of directors.
- Proceeds from the note will be used for working capital and general corporate purposes.
- The note is a senior unsecured obligation, becoming secured by a Springing Lien upon certain subordination agreements.
Price Impact
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