The past year and a half has been trying for Solo Brands. The Solo Stove maker has to contend with the threat of bankruptcy, an overhaul of their executive team, downsizing the company, and a reverse stock split to stay listed.

Through hard work, they’ve managed to start to turn the business around. They got back to releasing new products, and continue to make transformational moves to their expense structure.

Unfortunately, they now have another hurdle to deal with. They have been delisted from the New York Stock Exchange again, and this time it will be harder to solve than performing a reverse stock split.

Their market cap has fallen below $15 million over 30 consecutive trading days. That’s out of compliance with Rule 802.01B of the NYSE Listed Company Manual, so trading of the company on the exchange was suspended at market close today.

Following the notification from the NYSE, our business continues with no changes to our operations, strategic priorities, or financial position. Our strategic transformation remains on track, and we intend to continue to operate with full transparency through SEC filings, earnings calls, and ongoing investor relations outreach. We remain focused on building a lean, profit-driven organization and leveraging our innovation capabilities to strengthen our competitive position. Our balance sheet remains sound, we are in compliance with all debt covenants, and we continue to prioritize cash flow generation to reduce debt over time. Ultimately, our objective is to execute consistently, improve profitability, and position the Company to return to a national exchange.

John Larson, President and CEO of Solo Brands

Solo Brands can appeal the decision, and they’re evaluating that option. This one will be much harder to solve though than their previous delisting for having a share price under $1. A reverse stock split is pretty mechanical in nature to raise share price, but company improvements, and getting people to believe in them, is a longer road.

Solo Brands will now be traded on the OTCQB Venture Market starting April 6th, but having a market there isn’t guaranteed.

Fellow outdoor brand, Traeger, has followed a similar path as Solo Brands over the past year. They were heavily impacted by tariffs, are working to right-size the business, got a delisting notice for a sub-$1 share price, and did a reverse stock split.

I think they have some more value due to a strong brand and the category they play in, but it’s not out of the question that they could see their market cap continue to shrink. Their share price is around $30 with a market cap just north of $84 million. If macro headwinds continue, they could also be dealing with a similar situation.