Polar Power Raises $1M in Highly Dilutive Preferred Stock and Warrant Financing
POLA sits 31% above its 52-week low of $1.31.
Summary
Polar Power raised $1 million through a toxic convertible preferred stock and warrant deal, adding to a string of highly dilutive financings as the company fights for survival.
Key Events · Financing and Capital Events · POLA
-
$1M Convertible Preferred Financing
Issued 1,111 shares of Series A Convertible Preferred Stock to CL Investment Group LLC and LU2 Holdings LLC for $999,700 in gross proceeds, at a 10% discount to the $1,000 per share stated value.
-
Deeply Dilutive Conversion Terms
Preferred stock converts at 90% of the lowest VWAP over the prior seven trading days, with a 10% annual dividend accruing monthly. At the current stock price of $1.72, each $1,000 preferred share would convert into approximately 646 common shares, representing significant potential dilution.
-
Warrants for 302,940 Shares
Issued warrants to purchase 302,940 common shares at $1.65 per share, exercisable for three years. Combined with the preferred conversion, total potential dilution could exceed 20% of the current outstanding shares.
-
Registration Rights Agreement
Agreed to file a resale registration statement within 30 days, enabling the investors to sell the underlying common shares into the market, which could pressure the stock price.
Analysis · POLA · Manufacturing
Polar Power sold $999,700 of Series A Convertible Preferred Stock to two investors at a 10% discount to stated value, along with warrants for 302,940 shares at $1.65. The preferred stock carries a 10% annual dividend and converts at a floating 10% discount to the lowest VWAP over seven trading days — a deeply dilutive structure that can rapidly increase share count as the stock price fluctuates. This follows a series of distressed financings, including a $25 million equity line that is largely unusable due to Nasdaq limits, and comes amid eviction threats and delisting risk. The new capital provides short-term runway but at severe cost to existing shareholders.
How filings like this one have moved
In the 30 days to Oct 19, 2026, 43.2% of the 271 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.30%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, POLA was trading at $1.72 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $6.9M. The 52-week trading range was $1.31 to $5.75. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.