Polar Power (NASDAQ: POLA) sets 10% Series A convertible preferred terms
Rhea-AI Filing Summary
Polar Power, Inc. established a new Series A Convertible Preferred Stock by filing a certificate of designation with the Delaware Secretary of State on July 10, 2026. The series has a par value of $0.0001, a stated value of $1,000 per share, and 25,000 shares reserved for issuance.
The preferred stock carries a 10% annual dividend accruing monthly and is convertible into common stock at a market conversion price equal to 90% of the lowest VWAP over seven consecutive trading days, based on specified measurement dates. Polar Power states it has not yet issued or sold any of these preferred shares.
Positive
- None.
Negative
- None.
Filing Explained
If the reserved preferred shares are later issued and converted, the resulting common shares would reduce existing holders’ percentage ownership absent offsetting changes; the filing says none have yet been issued or sold, so no current common-share dilution is disclosed.
8-K Event Classification
2 items: 5.03, 9.01
2 items
Item 5.03
Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
Governance
The company amended its charter documents, bylaws, or changed its fiscal year.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Series A preferred shares reserved: 25,000 shares
Preferred stated value: $1,000 per share
Preferred par value: $0.0001 per share
+5 more
8 metrics
Series A preferred shares reserved
25,000 shares
Shares of Series A Convertible Preferred Stock reserved for issuance
Preferred stated value
$1,000 per share
Stated value of each share of Series A Convertible Preferred Stock
Preferred par value
$0.0001 per share
Par value of the Company’s preferred and common stock
Dividend rate
10% per annum
Annual dividend rate on the Series A Convertible Preferred Stock, accruing monthly
Conversion price factor
90% of lowest VWAP
Market conversion price equals 90% of the lowest VWAP over seven consecutive trading days
VWAP measurement window
seven consecutive trading days
Period used to determine the lowest VWAP for conversion pricing
Common stock issuance threshold
20% of outstanding Common Stock
Threshold tied to shareholder approval for issuing additional common shares
Certificate filing date
July 10, 2026
Date the certificate of designation was filed with the Delaware Secretary of State
Key Terms
Series A Convertible Preferred Stock, stated value, VWAP, registration statement, +1 more
5 terms
Series A Convertible Preferred Stock financial
"designated as “Series A Convertible Preferred Stock,” having a stated value"
Series A convertible preferred stock is a class of shares sold in an early funding round that gives investors a mix of protection and upside: it pays a priority claim over common shares if the company is sold or closes, but can be converted into ordinary shares to share in future growth. Think of it like a hybrid between a safer stake and a ticket to ownership; it matters to investors because it affects who controls the company, how future gains are split, and how much their investment is protected from downside.
stated value financial
"having a stated value of $1,000 per share with 25,000 shares reserved"
Stated value is an accounting figure a company assigns to a share when the share has no par (legal) value; it becomes the portion of proceeds recorded as the company’s permanent capital for regulatory and bookkeeping purposes. It matters to investors because it affects the equity reported on the balance sheet and the legal limits on distributions or dividend payments, but it is not the market price — think of it as a record-keeping sticker price rather than what buyers actually pay.
VWAP financial
"market conversion price will be equal to 90% of the lowest VWAP over the seven"
VWAP, or Volume-Weighted Average Price, is a way to find the average price of a stock throughout the trading day, giving more importance to times when more shares are traded. It helps traders see the typical price and decide whether a stock is expensive or cheap compared to its average, similar to finding the average speed during a trip by giving more weight to times when you traveled faster or slower.
registration statement regulatory
"effectiveness of a registration statement for resale of the Preferred Conversion Shares"
A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What corporate action did Polar Power (POLA) take regarding its capital structure?
Polar Power created a new Series A Convertible Preferred Stock by filing a certificate of designation in Delaware on July 10, 2026, with 25,000 shares reserved for future issuance under this series.
What are the key terms of POLA’s Series A Convertible Preferred Stock?
The Series A preferred has $0.0001 par value, $1,000 stated value per share, a 10% annual dividend accruing monthly, and is convertible into common stock at a price tied to 90% of the lowest VWAP over a seven-day window.
Has Polar Power (POLA) issued any Series A Convertible Preferred Stock yet?
No. Polar Power states it has not yet issued or sold any shares of its Series A Convertible Preferred Stock; only the terms have been established and documented through the certificate of designation.
What dividend does POLA’s Series A Convertible Preferred Stock pay?
The Series A preferred carries a 10% per annum dividend, which accrues monthly. This means dividend value accumulates each month based on the stated value of $1,000 per share until paid or otherwise addressed under its terms.