Polar Power Announces Receipt of Letter from Nasdaq Acknowledging Listing Compliance

Rhea-AI Summary

Polar Power (NASDAQ: POLA) has successfully regained compliance with Nasdaq's minimum bid price requirement under Listing Rule 5550(a)(2). As a result, the company will maintain its Nasdaq listing, and the previously scheduled hearing before the hearings panel on January 23, 2025, has been canceled. The company's CEO, Arthur Sams, emphasized the importance of maintaining the Nasdaq listing for the company's growth and stability, affirming their commitment to building shareholder value.

Positive

• Regained Nasdaq listing compliance, avoiding potential delisting
• Canceled hearing with Nasdaq panel, resolving listing concerns

Negative

• Previous non-compliance with Nasdaq minimum bid price requirement indicates recent stock price weakness

Insights

Financial Compliance Analyst

This compliance update carries substantial weight for Polar Power's market position and investor confidence. The company's successful regaining of Nasdaq compliance by meeting the minimum bid price requirement ($1 per share) eliminates a significant delisting risk that could have forced the stock to trade over-the-counter.

For micro-cap companies like Polar Power, with a market cap of just $7 million, maintaining Nasdaq listing is important as it provides better liquidity, broader market access and enhanced credibility with institutional investors. The cancellation of the January 2025 hearing removes uncertainty and regulatory overhead.

However, investors should note that while compliance has been restored, the company's small market capitalization still presents inherent risks. The stock will need to consistently maintain the minimum bid requirements to avoid future compliance issues. This development, while positive for immediate stability, doesn't address fundamental business performance or growth metrics.

Market Structure Specialist

The restoration of listing compliance represents a critical inflection point for POLA's market structure dynamics. Nasdaq listing provides significant advantages over OTC markets, including enhanced market making participation, better price discovery mechanisms and stricter regulatory oversight.

Think of it like upgrading from a local farmers' market to a national supermarket chain - the product remains the same, but the trading infrastructure and visibility improve dramatically. This status preservation is particularly vital for Polar Power's renewable energy focus, as ESG-conscious institutional investors typically have mandates restricting them to major exchange-listed securities.

The key technical consideration now shifts to maintaining consistent trading volume and price stability above compliance thresholds. While the immediate threat is resolved, the micro-cap nature of the stock means volatility risks persist, requiring careful monitoring of market mechanics and potential need for future corporate actions.

GARDENA, CA, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Polar Power, Inc. (NASDAQ: POLA) (“Polar Power”), a global provider of prime, backup, solar hybrid power, and microgrid solutions, is pleased to announce that it has successfully regained compliance with the minimum bid price requirement set forth by The Nasdaq Stock Market LLC (“Nasdaq”).

The Company has received notification from Nasdaq confirming its compliance with Listing Rule 5550(a)(2), thereby meeting Nasdaq’s maintenance requirements for listing. As a result, the scheduled hearing before the hearings panel on January 23, 2025 has been canceled.

Arthur Sams, CEO and Chairman of Polar Power commented, “Maintaining our Nasdaq listing was important for the continued growth and stability of the company, and we will continue to take corporate actions that are consistent with protecting and building value for our shareholders.”

About Polar Power, Inc.

Polar Power (NASDAQ: POLA), an innovative provider of DC advanced power and cooling systems across diverse industrial applications, is pioneering technological changes that radically change the production, consumption, and environmental impact of power generation. Its product portfolio, known for innovation, durability, and efficiency, presently includes standard products for telecom, military, renewable energy, marine, automotive, residential, commercial, oil field and mining applications. Polar Power’s systems can be configured to operate on any energy source including photovoltaics, diesel, LPG (propane and butane), and renewable fuels.

Polar Power’s telecom power solutions offer significant cost savings with installation, permitting, site leases, and operation. Its military solutions provide compact, lightweight, fuel efficient, reliable power solutions for robotics, drone, communications, hybrid propulsion, and other applications.

Polar Power’s mobile rapid battery charging technology enables on-demand roadside charging for electric vehicles. Its combined heat and power (CHP) residential systems offer innovative vehicle charging and integrated home power systems via natural gas or propane feedstocks, optimizing performance and system costs.

Polar Power’s micro / nano grid solutions provide lower cost energy in “bad-grid or no-grid” environments. Its commitment to technological advancement extends to hybrid propulsion systems for marine and specialty vehicles, ensuring efficiency, comfort, reliability, and cost savings.

For more information, please visit www.polarpower.com or follow Polar Power on www.linkedin.com/company/polar-power-inc/.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This news release contains certain statements of a forward-looking nature relating to future events or future business performance. Forward-looking statements can be identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates,” “plans,” “will,” “outlook” and similar expressions. Forward-looking statements are based on management’s current plans, estimates, assumptions and projections, and speak only as of the date they are made. It undertakes no obligation to update any forward-looking statement in light of new information or future events, except as otherwise required by law. Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and are generally beyond Polar Power’s control. Actual results or outcomes may differ materially from those implied by the forward-looking statements as a result of the impact of a number of factors, many of which are discussed in more detail in Polar Power’s reports filed with the Securities and Exchange Commission.

Investor Relations Contact:

At CORE IR
Peter Seltzberg, SVP Investor Relations and Corporate Advisory
peters@coreir.com

At Polar Power Inc.
IR@PolarPowerinc.com

FAQ

What does Polar Power's Nasdaq compliance mean for POLA stock?

Polar Power's compliance with Nasdaq's minimum bid price requirement means the company will maintain its Nasdaq listing, avoiding potential delisting and ensuring continued trading on the major exchange.

When was Polar Power's Nasdaq hearing scheduled and why was it canceled?

The Nasdaq hearing was scheduled for January 23, 2025, but was canceled after POLA regained compliance with the minimum bid price requirement under Listing Rule 5550(a)(2).

What Nasdaq listing requirement did POLA regain compliance with?

POLA regained compliance with Nasdaq Listing Rule 5550(a)(2), which sets the minimum bid price requirement for continued listing on the exchange.

How will maintaining Nasdaq listing affect Polar Power's future?

According to CEO Arthur Sams, maintaining the Nasdaq listing is important for the company's continued growth and stability, supporting their efforts to build shareholder value.