RestructuringMay 22, 2026, 05:33 PM
Polar Power Secures $807K in Notes; Initiates Broad Restructuring
AI Summary
Polar Power, Inc. secured $807,100 in net proceeds by issuing two 6% convertible redeemable notes totaling $970,600 in principal to CFI Capital LLC and Monroe Street Capital Partners, LP. These notes are convertible into common stock at a discount after six months. Concurrently, the company entered a Restructuring, Implementation and Management Services Agreement with Mammoth Crest Capital, LLC, involving a $500,000 fee and a $25,000 monthly retainer. This agreement includes significant board changes, with two new directors designated by MCC, and requires shareholder approval for conversions exceeding 19.99% of outstanding common stock.
Key Highlights
- Issued $600,000 principal 6% convertible note to CFI Capital, yielding $500,000 net proceeds.
- Issued $370,600 principal 6% convertible note to Monroe Street Capital, yielding $307,100 net proceeds.
- Total net proceeds from convertible notes amounted to $807,100.
- Notes are convertible after six months at 80% of lowest 10-day VWAP, or 65% if delisted.
- Entered restructuring agreement with Mammoth Crest Capital for $500,000 fee and $25,000 monthly retainer.
- Board of directors to expand to seven, with two new directors designated by MCC.
- Shareholder approval required for conversions exceeding 19.99% of outstanding common stock.
Price Impact
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