Solo Stove has been struggling over the past year. They are the lion’s share of the holding company Solo Brands, so it’s been felt in their stock price.
They still have the same great products that they’ve always had, but they haven’t had any major innovations over the past year, and they’ve had a bunch of transition. As a quick recap, they parted ways with their CEO, turned over their entire executive team, only to then part ways with their subsequent CEO.
We noted in our article about layoffs they conducted that their share price fell below $1. That’s an important number because under stock listing rules with the New York Stock Exchange, if a company’s average closing price is under $1 for a consecutive 30 day trading period then they’re out of compliance with the exchange.
On February 25th, Solo Brands received notice from the NYSE that they are not in compliance with continued listing standards. To cure that and remain listed, Solo Brands first has to notify the exchange that they plan to cure it. Then they have a six month period where their stock must close at a price of at least $1 at the end of a calendar month and have had an average closing price of over $1 over the previous 30 trading days.
In the meantime, Solo Brands will remain listed. It also doesn’t mean anything for the company operationally.
We’ll see what Solo Brands can do to spark their stock price. Today it closed at $0.75, so it has a ways to go, and some major hurdles with an interim CEO at the helm. To satisfy traders they likely need a solid CEO hire, unexpectedly good earnings, or to release some major innovations.
We’re still waiting for them to schedule their earnings call for Q4 and the full year of 2024. Usually they report right around the same time as Traeger, but Traeger is scheduled for March 6th, and there’s been no word from Solo Brands.