Solidion holds firm on Polar Power bid after board rejection

Solidion Technology (NASDAQ: STI) said it sees no basis to raise its all-cash asset acquisition offer for Polar Power (NASDAQ: POLA) after Polar Power's board rejected the proposal, according to a press release from Solidion.

Solidion Chairman and CEO Jaymes Winters said the company's valuation is based on financial modeling and due diligence, adding that Solidion "will not overpay to simply complete a transaction."

Solidion cited several financial concerns to support its position on the offer price. For the six months ended June 30, 2026, Polar Power reported a net loss of approximately $2.0 million and used approximately $2.2 million in cash from operations, leaving a cash balance of $183,000.

Polar Power established a committed equity facility on July 27, 2026, permitting the sale of up to $25 million of common stock for working capital. The company also issued convertible notes on August 26 that convert at the lower of 80% of the five-day volume-weighted average price or $1.00 per share if not repaid at maturity.

Nasdaq notified Polar Power on December 31, 2025, that the company did not satisfy its minimum stockholders' equity requirement, reporting approximately $144,000 in stockholders' equity. Polar Power has until October 28, 2026, to demonstrate compliance. Polar Power's independent auditors expressed substantial doubt about the company's ability to continue as a going concern in its June 30, 2026, Form 10-Q filing.

Polar Power recently converted approximately $614,700 of debt owed to its CEO into preferred equity, which Solidion said does not provide the operating liquidity needed to fund the business or eliminate the need for additional capital.

Solidion said no definitive agreement has been reached and no assurance exists that any transaction will be completed. Any potential deal would be subject to regulatory requirements, due diligence, financing, and other customary conditions.

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