Polar Power secures $25M equity facility with Roth affiliate

Polar Power, Inc. (NASDAQ: POLA) announced it has entered into a Committed Equity Facility (CEF) with Roth Principal Investments, LLC, an affiliate of CR Financial Holdings, Inc., the holding company for Roth Capital Partners.

The agreement allows, but does not obligate, the Gardena, Calif.-based company to issue and sell up to $25 million of its common stock to Roth Principal Investments at its discretion, subject to certain conditions and the filing and effectiveness of a registration statement with the SEC. The company intends to use any net proceeds for working capital and general corporate purposes.

Polar Power noted it may not be able to sell the full $25 million available under the facility due to limitations including the number of shares registered for resale and applicable Nasdaq rules. Sales under the facility, if any, are expected to be made at prices based on the prevailing market price of the stock at the time of sale. The company cautioned that such sales, along with resales by Roth Principal Investments, may be dilutive to existing stockholders.

Arthur D. Sams, President and Chief Executive Officer, said the facility is "intended to provide additional financial and working capital flexibility to support the continued growth of our DC power systems business," citing expansion into drone charging systems, micro/nano grids, EV charging, robotics, and data center power and cooling solutions.

Polar Power designs, manufactures, and sells DC power systems for telecommunications, military, automotive, and industrial applications. The company has also expanded its product portfolio to include power and cooling systems for data centers and charging systems for drones.

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