Solo Stove’s parent company, Solo Brands, had their stock delisted by the New York Stock Exchange a couple weeks ago. It already wasn’t compliant by trading under $1, but when it fell to $0.10, trading was immediately suspended.
Solo Brands has appealed that decision and believes they can get the price back up. While they go through the appeal process, it will remain listed, but trading will be suspended.
We believe that the current trading price and market capitalization of Solo Brands does not reflect the value of the Company, and as a result, we have decided to appeal the decision of the staff of NYSE Regulation. While there can be no assurance regarding the outcome of the appeal, we remain committed to our efforts to restore compliance with NYSE listing standards as we execute our action plans, which include a reverse stock split.
John Larson, Solo Brands Interim President and Chief Executive Officer
Solo Brands had previously said that with their fire pit manufacturing based in China, tariffs could push them into bankruptcy. Once tariffs were implemented, their stock price took another big hit.
Being traded in OTC markets rather than the New York Stock Exchange is problematic for the already stretched company. It means less liquidity when they need it the most.
Right before trading of their stock was suspended, they had announced a proxy vote to help remedy the problem. They planned a reverse stock split to prop the price up.
We’ll see how they’re faring with tariffs shortly. They announced they plan to release earnings on Monday, May 12th before the market opens. On their last earnings call they only had a prepared statement, but no analyst Q&A section. We’ll see if this one follows that same format.