GARDENA, CA - Polar Power, Inc. (NASDAQ: POLA), a provider of power and microgrid solutions, has announced a reverse stock split of its common stock at a ratio of 1-for-7. The split is set to take effect when markets open on November 19, 2024, as the company aims to comply with Nasdaq's minimum bid price rule.
The reverse stock split was authorized by Polar Power's stockholders at the annual meeting on November 11, 2024, following a definitive proxy statement filed with the SEC on October 1, 2024. The board was given discretion to select a ratio between 1-for-3 and 1-for-20 before the year's end, settling on 1-for-7.
This corporate action will reduce the number of outstanding shares and is expected to proportionally increase the stock's per-share trading price. The company's common stock will retain its ticker symbol POLA on the Nasdaq Capital Market, with a new CUSIP number of 73102V204.
The reverse stock split will also adjust the number of shares available under the company's equity incentive plan and the exercise price and number of shares issuable upon the exercise of outstanding stock options. No fractional shares will be issued; instead, shareholders will receive a rounded-up whole share in place of any fractional entitlement.
Polar Power specializes in advanced power and cooling systems for a variety of industrial applications, including telecom, military, and renewable energy sectors. Its technological advancements aim to improve the efficiency and environmental impact of power generation.
Questions regarding the reverse stock split from shareholders with brokerage accounts should be directed to their brokers, while other inquiries can be addressed to the company's transfer agent, VStock Transfer, LLC.
This news is based on a press release statement and contains forward-looking statements regarding the company's future performance, which are subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those projected.
InvestingPro Insights
Polar Power's decision to implement a reverse stock split comes at a critical time for the company, as revealed by recent InvestingPro data. With a market capitalization of just $9.3 million USD, POLA is operating in a challenging financial environment. The company's revenue for the last twelve months as of Q2 2024 stood at $11.95 million USD, with a concerning revenue growth decline of -33.05% over the same period.
InvestingPro Tips highlight some of the key challenges facing Polar Power. The company "operates with a significant debt burden" and "may have trouble making interest payments on debt." These factors likely contributed to the decision to pursue a reverse stock split to maintain Nasdaq compliance. Additionally, the tip that the "stock generally trades with high price volatility" underscores the potential risks for investors.
Despite these challenges, it's worth noting that POLA has shown "strong return over the last three months," with a price total return of 21.9% as of the latest data. This recent performance might provide some optimism for the company's efforts to boost its share price through the reverse split.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Polar Power, providing a deeper understanding of the company's financial health and market position. These insights could be particularly valuable as the company navigates this significant corporate action.
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