Traeger has been battling with listing compliance on NYSE for almost a year at this point. Once the share price of a company goes below $1 and stays there, they run the risk of being delisted without taking corrective actions.

Traeger’s share price sit at $0.60 today, and it’s been under $1 since the beginning of February. With no quick fix for the struggling grilling market, Traeger has received approval from their shareholders and Board to perform a reverse stock split to raise their price per share.

They’re doing a 1-for-50 reverse stock split, which means that every 50 shares of stock will be combined into one. An example of how this works is with their share price at $0.60, if someone owned 50 shares for a total value of $30, they would own 1 share that’s valued at $30 all other things being equal.

The reverse stock split is set to take place at 5 pm Eastern Time tomorrow, March 17th. That means investors will notice the change at market open the following day.

Solo Brands, the owners of Solo Stove, followed this same path last year. After some major headwinds, their share price was well below $1. They performed a 1-for-40 reverse stock split to boost their price per share up above listing requirements.

While it is effective at raising share price, it doesn’t fix the underlying issues a company is facing. In the case of the outdoor cooking industry, it’s still struggling with consumer headwinds, a very sluggish housing market, and tariff pressures.

Solo Brands price per share is down to $6.80 because of the pressure their facing. They had some strong innovation over the past year and have been rebuilding, but it’s hard to overcome macro issues.

Likewise, Traeger is planning two new products in Q2 this year that are under $1,000. They’ve seen success under that price point, so they’re trying to bring more consumers into their brand by innovating with lower cost products.