Polar Power, Inc. has entered into a Common Stock Purchase Agreement with Roth Principal Investments, LLC, providing the company with the right to sell up to $25.0 million of its common stock over a 36-month period. This "equity line of credit" facility offers flexible access to capital, as the timing and amount of any stock sales are at Polar Power's sole discretion, subject to specific conditions.
Key Details
- Financing Facility: Polar Power has the right, but not the obligation, to sell up to $25.0 million of its common stock to Roth Principal Investments over a 36-month term, which begins after a registration statement is declared effective.
- Pricing and Fees: Shares sold during regular market hours will be priced at a 3.0% discount to the volume-weighted average price (VWAP), while pre-market and post-market sales will have a 6.0% discount. Polar Power will pay a $500,000 commitment fee and reimburse certain legal expenses.
- Limitations & Terms: Issuances are subject to a Nasdaq limit of 769,952 shares (19.99% of pre-agreement outstanding shares) unless stockholder approval is obtained or a minimum price threshold is met. Additionally, Roth's beneficial ownership is capped at 4.99% of outstanding shares. Proceeds are intended for working capital and general corporate purposes.