Polar Power, Inc. (NASDAQ: POLA) announced that its Board of Directors has rejected an all-cash proposal from Solidion to acquire all of the company's assets, citing that the offer materially undervalues its assets and business prospects.

The Gardena, California-based company received Solidion's offer the week prior to the announcement. Following a review, the Board determined the proposal did not adequately reflect the value of Polar Power's intellectual property, existing business opportunities, or its growth potential.

Chief Executive Officer Arthur Sams commented on the decision: "The Board determined that Solidion's proposal does not come close to reflecting the value of those assets or the future opportunities we see for the Company. Our focus is on maximizing value for our shareholders, and we remain open to evaluating credible strategic transactions that we believe can deliver superior value."

The Board stated it will continue evaluating strategic alternatives, including mergers, acquisitions, business combinations, joint ventures, and strategic investments. Polar Power designs and manufactures direct-current power systems for telecommunications, data centers, defense, EV charging, and microgrid markets.