Polar Power Secures $250K Convertible Note with 10% OID and Board Seat for Lender
POLA sits 25% above its 52-week low of $1.31 on light trading volume (0.2× avg).
Summary
Polar Power obtained a $250,000 convertible note with highly dilutive terms and granted the lender a board seat, reflecting the company's urgent need for capital amidst ongoing financial distress.
Key Events · Financing and Capital Events · POLA
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Convertible Note Issued
Polar Power received $250,000 in cash from a $275,000 convertible promissory note issued to Mayers Ventures LLC, reflecting a 10% original issuance discount.
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Highly Dilutive Terms
The note carries a 10% PIK interest rate and is convertible into common stock at 90% of the lowest daily VWAP, subject to a floor price, indicating significant potential dilution for existing shareholders.
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Lender Board Representation
Mayers Ventures LLC gains the right to designate one individual for appointment or election to the company's board of directors, granting the lender direct influence.
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Negative Covenants & Urgency
The company is restricted from incurring additional debt or variable-rate financing until 30 days after the note is repaid or converted, unless a larger $1.75 million financing is not secured by July 10, 2026, highlighting immediate capital needs.
Analysis · POLA · Manufacturing
Polar Power, a company facing significant financial challenges, secured a $250,000 convertible promissory note. While providing much-needed working capital, the terms are highly dilutive for existing shareholders, including a 10% original issuance discount, 10% PIK interest, and conversion at 90% of the lowest VWAP. The lender also gains a board seat, indicating significant influence. This financing is a short-term lifeline but underscores the company's precarious financial position and the high cost of capital it is incurring.
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 $1.64 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $6M. 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.