Polar Power Enters into $500,000 Convertible Preferred Stock and Warrant Financing Agreement

Polar Power, Inc. (POLA) has entered into a series of agreements to raise capital, highlighted by a Securities Purchase Agreement with LU2 Holdings LLC. The company will issue up to $500,000 in stated value of Series A Convertible Preferred Stock for a purchase price of $450,000. The transaction also includes the issuance of common stock purchase warrants to the new investor and a previous noteholder.

Key Details

• Financing Agreement: On July 21, 2026, POLA agreed to sell up to $500,000 in stated value of Series A Convertible Preferred Stock to LU2 Holdings LLC for $450,000. The preferred stock bears a 10% annual dividend and is convertible into common stock at 90% of the lowest VWAP over the seven trading days preceding conversion.
• Warrants Issued: In connection with the agreement, POLA issued warrants to purchase 150,915 shares of common stock to LU2 Holdings LLC. Additionally, warrants to purchase 83,841 shares were issued to Mayers Ventures LLC related to a prior convertible note, with an exercise price of $1.64 per share.
• Related Actions: The company also entered into a Business Consultant Agreement with LU2 Holdings LLC, involving a $100,000 cash fee and $50,000 in restricted stock for strategic advisory services. On July 23, 2026, POLA terminated its existing At-The-Market (ATM) sales agreement with ThinkEquity LLC.