Solidion Reaffirms Terms After Polar Rejection

Solidion Technology, Inc. stated on Tuesday, Oct. 6, 2026, that it sees no basis to increase its all-cash proposal to acquire substantially all of the assets of Polar Power, Inc. The announcement follows a decision by the board of directors of Polar Power to reject the asset acquisition bid. According to a report by PR Newswire M&A, Solidion Chairman and CEO Jaymes Winters defended the company valuation approach and warned that Polar Power faces severe financial distress.

Solidion maintained that its valuation reflects disciplined financial modeling and due diligence rather than an intent to diminish target assets. Winters stated that the company will not overpay to complete a transaction. Solidion characterized Polar Power as a distressed entity attempting to raise dilutive capital amid economic headwinds. The acquirer stated that clean tech startup and battery sector participants must maintain rigorous capital standards.

Operating Losses and Cash Flow Pressures

Solidion cited several balance sheet metrics in arguing that its acquisition offer does not undervalue Polar Power. For the six months ended June 30, 2026, Polar Power reported a net loss of approximately $2.0 million. The company used approximately $2.2 million of cash in operations during the same period, leaving a cash balance of $183,000.

Polar Power has increasingly relied on dilutive financing instruments to support operations. On July 27, 2026, the company established a committed equity facility to sell up to $25 million of common stock. Additionally, Polar Power raised capital through convertible securities, including August 26 notes that convert at the lower of 80% of the five-day volume-weighted average price or $1.00 per share if left unpaid at maturity.

NASDAQ Compliance and Going Concern Doubts

Regulatory and compliance hurdles compound the operational headwinds facing Polar Power. NASDAQ notified the company on December 31, 2025, that it failed to meet minimum stockholders' equity requirements after reporting approximately $144,000 in stockholders' equity. Polar Power must demonstrate compliance by October 28, 2026. Furthermore, the company's independent registered public accounting firm expressed substantial doubt about its ability to continue as a going concern in its June 30, 2026 Form 10-Q filing.

Polar Power recently converted approximately $614,700 of debt owed to its chief executive officer into preferred equity as an initial step toward regaining NASDAQ compliance. Solidion argued that while the conversion addresses compliance, it fails to provide the operating liquidity necessary to sustain the business or eliminate the need for fresh capital.

Transaction Status and Corporate Background

Headquartered in Dallas, Texas, with pilot production facilities in Dayton, Ohio, Solidion manufactures battery materials and components. Its portfolio includes next-generation batteries for energy storage systems, uninterruptible power supply systems targeting the artificial intelligence data center market, and electric vehicles. The company holds over 385 patents covering silicon anodes, biomass-based graphite, and lithium-sulfur technologies. Analysts tracking digital marketing technology and industrial development note that corporate buyers continue to apply strict valuations as borrowing costs remain elevated.

Solidion emphasized that no binding agreement exists between the two parties. Any potential transaction remains subject to due diligence, regulatory requirements, financing terms, and definitive documentation. Neither company is legally bound to proceed unless a final written acquisition agreement is executed. This communication is for informational purposes only and does not constitute an offer to purchase or a solicitation of an offer to sell any securities. If and when a transaction is commenced, Solidion expects to file applicable materials with the U.S. Securities and Exchange Commission, and investors are urged to read such materials carefully in their entirety when they become available because they will contain important information. This press release also contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and the company undertakes no obligation to publicly update any forward-looking statements except as required by law. For more information, interested parties may visit www.solidiontech.com or contact Investor Relations.