Solo Stove makes up the bulk of the business for parent company Solo Brands. They’ve been facing some major headwinds and have said that bankruptcy is on the table.
As a result their stock has been absolutely hammered. It traded at a peak of just over $21 in November 2021, but today it was trading at $0.09.
With such a low share price, trading of their stock has been suspended effective immediately. Solo Brands released the following in a press release.
The New York Stock Exchange (“NYSE”, the “Exchange”) announced today that the staff of NYSE Regulation has determined to commence proceedings to delist the Class A common stock — ticker symbol DTC —of Solo Brands, Inc. (the “Company”) from the NYSE. Trading in the Company’s Class A common stock will be suspended immediately.
NYSE Regulation has determined that the Company’s Class A common stock is no longer suitable for listing based on “abnormally low selling price” levels, pursuant to Section 802.01D of the Listed Company Manual.
The Company has a right to a review of this determination by a Committee of the Board of Directors of the Exchange. The NYSE will apply to the Securities and Exchange Commission to delist the Company’s Class A common stock upon completion of all applicable procedures, including any appeal by the Company of the NYSE Regulation staff’s decision.
Solo Brands April 22, 2025 Press Release
Timing of the suspended listing is unfortunate for Solo Brands. They released a proxy statement yesterday detailing what they will be voting on at an upcoming shareholders’ meeting and it included an item to help get their price back above $1.
They were going to vote on doing a reverse stock split, which would increase the stock price by reducing the number of shares outstanding. They outlined in their proxy that there was a risk in not being able to do this until the vote.
In addition, we may be subject to delisting proceedings prior to or following the stockholders’ vote on this proposal, or prior to or following the execution of the Reverse Stock Split due to non-compliance with other NYSE listing requirements. Specifically, the NYSE listing rules provide that the NYSE will immediately suspend trading of our Class A Common Stock and commence delisting proceedings, without providing a cure period, if our Class A Common Stock trades at levels viewed to be abnormally low, which is generally viewed as a price at or below $0.10, or if our average market capitalization over a consecutive 30 day-trading period is less than $15 million. If this occurred, we would not have an opportunity to cure these deficiencies, and our Class A Common Stock would be suspended from trading on the NYSE.
Solo Brands – April 21, 2025 Proxy Statement Filing
That risk was realized just a day after they announced the upcoming vote. With their trading suspended, it adds to their multitude of headwinds.
If our Class A Common Stock is delisted from the NYSE, the trading market for our Class A Common Stock could become significantly less liquid, which could further reduce the trading price of our Class A Common Stock and increase the transaction costs of trading in shares of our Class A Common Stock. Such delisting from the NYSE and continued or further decline in our stock price could also impair our ability to raise additional necessary capital through equity or debt financing.
Solo Brands – April 21, 2025 Proxy Statement Filing
The last sentence about raising capital is very important for their business. In their last earnings release, they noted that one of the keys to avoiding bankruptcy was by refinancing their debt. It’s another roadblock in the way of a business that has already had additional ones added from the high tariff environment.