Solo Brands Receives Continued Listing Standard Notice from NYSE
Solo Brands (NYSE: DTC) has received a notice from the New York Stock Exchange (NYSE) on February 25, 2025, indicating non-compliance with continued listing standards due to its Class A common stock's average closing price falling below $1.00 over a consecutive 30 trading-day period.
The company has a six-month cure period to regain compliance with the minimum share price requirement. Solo Brands must notify NYSE within 10 business days of its intent to cure the deficiency, which may include implementing a reverse stock split, subject to board and stockholder approval.
During this period, DTC's Class A common stock will continue trading on NYSE, provided other listing requirements are met. The company can regain compliance if its stock closes at $1.00 or higher and maintains an average closing price of at least $1.00 over a 30-day trading period. The notice does not impact business operations, SEC reporting obligations, or debt commitments.
Solo Brands (NYSE: DTC) ha ricevuto una comunicazione dalla Borsa di New York (NYSE) il 25 febbraio 2025, che indica la non conformità agli standard di quotazione continuativa a causa del prezzo medio di chiusura delle sue azioni ordinarie di Classe A, sceso al di sotto di $1.00 per un periodo di 30 giorni di negoziazione consecutivi.
La società ha un periodo di sei mesi per rimediare e ripristinare la conformità con il requisito di prezzo minimo delle azioni. Solo Brands deve notificare alla NYSE entro 10 giorni lavorativi la sua intenzione di sanare la carenza, che potrebbe includere l'implementazione di un frazionamento inverso delle azioni, soggetto all'approvazione del consiglio e degli azionisti.
Durante questo periodo, le azioni ordinarie di Classe A di DTC continueranno a essere negoziate sulla NYSE, a condizione che siano soddisfatti gli altri requisiti di quotazione. L'azienda può ripristinare la conformità se le sue azioni chiudono a $1.00 o più e mantengono un prezzo medio di chiusura di almeno $1.00 per un periodo di negoziazione di 30 giorni. La comunicazione non influisce sulle operazioni aziendali, sugli obblighi di reporting SEC o sugli impegni di debito.
Solo Brands (NYSE: DTC) ha recibido un aviso de la Bolsa de Nueva York (NYSE) el 25 de febrero de 2025, indicando la no conformidad con los estándares de cotización continua debido a que el precio medio de cierre de sus acciones ordinarias de Clase A ha caído por debajo de $1.00 durante un período de 30 días de negociación consecutivos.
La empresa tiene un período de seis meses para remediar y recuperar la conformidad con el requisito de precio mínimo por acción. Solo Brands debe notificar a la NYSE dentro de los 10 días hábiles su intención de subsanar la deficiencia, lo que puede incluir la implementación de una división inversa de acciones, sujeta a la aprobación de la junta y de los accionistas.
Durante este período, las acciones ordinarias de Clase A de DTC continuarán negociándose en la NYSE, siempre que se cumplan otros requisitos de cotización. La empresa puede recuperar la conformidad si sus acciones cierran a $1.00 o más y mantienen un precio medio de cierre de al menos $1.00 durante un período de negociación de 30 días. El aviso no afecta las operaciones comerciales, las obligaciones de informes de la SEC o los compromisos de deuda.
솔로 브랜드 (NYSE: DTC)는 2025년 2월 25일 뉴욕 증권 거래소(NYSE)로부터 통지서를 받았으며, 이는 클래스 A 보통주의 평균 종가가 연속 30 거래일 동안 $1.00 이하로 떨어져 지속적인 상장 기준을 준수하지 못함을 나타냅니다.
회사는 최소 주가 요건을 충족하기 위해 6개월의 치료 기간을 가지고 있습니다. 솔로 브랜드는 결함을 수정하려는 의도를 NYSE에 10영업일 이내에 통보해야 하며, 이는 이사회 및 주주 승인을 조건으로 하는 역주식 분할을 포함할 수 있습니다.
이 기간 동안 DTC의 클래스 A 보통주는 다른 상장 요건이 충족되는 한 NYSE에서 계속 거래될 것입니다. 회사는 주가가 $1.00 이상으로 마감하고 30일 거래 기간 동안 평균 종가가 최소 $1.00 이상인 경우 준수를 회복할 수 있습니다. 이 통지는 비즈니스 운영, SEC 보고 의무 또는 부채 약속에 영향을 미치지 않습니다.
Solo Brands (NYSE: DTC) a reçu un avis de la Bourse de New York (NYSE) le 25 février 2025, indiquant une non-conformité aux normes de cotation continue en raison de la chute du prix moyen de clôture de ses actions ordinaires de Classe A en dessous de $1.00 sur une période de 30 jours de négociation consécutifs.
L'entreprise dispose d'une période de six mois pour remédier à cette situation et retrouver la conformité avec l'exigence de prix minimum des actions. Solo Brands doit informer la NYSE dans les 10 jours ouvrables de son intention de remédier à cette déficience, ce qui peut inclure la mise en œuvre d'une division inversée des actions, sous réserve de l'approbation du conseil d'administration et des actionnaires.
Durant cette période, les actions ordinaires de Classe A de DTC continueront à être négociées à la NYSE, à condition que les autres exigences de cotation soient respectées. L'entreprise peut retrouver la conformité si son action clôture à $1.00 ou plus et maintient un prix moyen de clôture d'au moins $1.00 sur une période de 30 jours de négociation. L'avis n'affecte pas les opérations commerciales, les obligations de reporting auprès de la SEC ou les engagements de dette.
Solo Brands (NYSE: DTC) hat am 25. Februar 2025 eine Mitteilung von der New Yorker Börse (NYSE) erhalten, die auf die Nichteinhaltung der fortlaufenden Listungsstandards hinweist, da der durchschnittliche Schlusskurs der Stammaktien der Klasse A unter $1,00 gefallen ist, über einen Zeitraum von 30 aufeinanderfolgenden Handelstagen.
Das Unternehmen hat eine Sechs-Monats-Frist zur Behebung, um die Einhaltung der Mindestaktienpreisvorgaben wiederherzustellen. Solo Brands muss die NYSE innerhalb von 10 Geschäftstagen über seine Absicht informieren, den Mangel zu beheben, was die Umsetzung eines Reverse Stock Splits beinhalten kann, vorbehaltlich der Genehmigung durch den Vorstand und die Aktionäre.
Während dieses Zeitraums wird die Klasse A Stammaktie von DTC weiterhin an der NYSE gehandelt, sofern die anderen Listungsanforderungen erfüllt sind. Das Unternehmen kann die Einhaltung wiederherstellen, wenn seine Aktie bei $1,00 oder höher schließt und einen durchschnittlichen Schlusskurs von mindestens $1,00 über einen Zeitraum von 30 Handelstagen aufrechterhält. Die Mitteilung hat keine Auswirkungen auf die Geschäftstätigkeit, die Berichtspflichten der SEC oder die Schuldenverpflichtungen.
- Six-month grace period to cure price deficiency
- No impact on business operations or debt obligations
- Trading continues on NYSE during cure period
- Stock trading below $1.00 for 30 consecutive trading days
- Risk of potential NYSE delisting if compliance not achieved
- Possible reverse stock split may be needed
Insights
Solo Brands' NYSE delisting notice represents a significant red flag for investors. With a current market cap of just
The most likely remedy will be a reverse stock split, which would mathematically increase the share price without changing the company's underlying value. However, companies implementing reverse splits often continue to experience downward price pressure afterward, as the action doesn't address core business challenges.
For investors, the implications extend beyond the immediate non-impact on operations. Potential consequences include:
- Accelerated institutional investor exodus, as many funds have mandates prohibiting investments in non-listed securities
- Reduced analyst coverage, further limiting market visibility
- Restricted access to capital markets for future financing needs
- Significantly reduced trading liquidity if eventually moved to OTC markets
- Potential covenant violations in any debt agreements that require major exchange listings
This development comes amid broader challenges in the direct-to-consumer sector, where Solo Brands' portfolio (Solo Stove, Chubbies, Oru Kayak, ISLE) has struggled to maintain growth and profitability in a post-pandemic retail environment. The delisting notice typically creates a negative feedback loop where the stigma itself drives further selling pressure, making compliance more difficult to achieve organically.
Notice Has No Immediate Impact on the Listing or Trading of Solo Brands’ Class A Common Stock
In accordance with the NYSE rules, the Company has a period of six months following receipt of the NYSE notice to regain compliance with the minimum share price requirement. The NYSE rules require the Company to notify the NYSE within 10 business days of receiving the NYSE notice of its intent to cure this deficiency, which may include, if necessary, effecting a reverse stock split, subject to approval by the Board of Directors and stockholders of the Company.
Under the NYSE rules, the Company’s Class A common stock will continue to be listed and traded on the NYSE during the cure period, subject to the Company’s compliance with other continued listing requirements. The Company can regain compliance at any time during the cure period if on the last trading day of any calendar month during the cure period, its Class A common stock has a closing share price of at least
The NYSE notice does not affect the Company’s business operations or its reporting obligations with the Securities and Exchange Commission, nor does it trigger any violation of its debt obligations.
About Solo Brands
Solo Brands, headquartered in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the Company’s plans with respect to the NYSE notice of non-compliance, including a potential reverse stock split. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. These statements are neither promises nor guarantees, and involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: reactions from our employees, vendors, customers, lenders and investors to the Company’s receipt of the NYSE notice of non-compliance, the Company’s ability to regain compliance with the minimum share price requirement within the applicable cure period; the Company’s ability to comply with other NYSE listing standards and maintain the listing of its common stock on the NYSE; the impact of management transitions on our common stock; our ability to manage our future growth effectively; our ability to expand into additional markets; our ability to maintain and strengthen our brand to generate and maintain ongoing demand for our products; our ability to cost-effectively attract new customers and retain our existing customers; the highly competitive market in which we operate; and the ability of our stockholders to influence corporate matters. These and other important factors discussed under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, as amended by Amendment No. 1 on Form 10-K/A, and any subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, or other filings we make with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Forward-looking statements speak only as of the date the statements are made and are based on information available to Solo Brands at the time those statements are made and/or management's good faith belief as of that time with respect to future events. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250226810175/en/
Company Contact:
Solo Brands, Inc.
Mark Anderson
Sr. Director, Treasury & Investor Relations
investors@solobrands.com
Investor Relations Contact:
Three Part Advisors, LLC
Sandy Martin or Steven Hooser
214-616-2207
Source: Solo Brands, Inc.
FAQ
What is the deadline for Solo Brands (DTC) to regain NYSE compliance in 2025?
How can Solo Brands (DTC) regain NYSE compliance after the February 2025 notice?
Will Solo Brands (DTC) be immediately delisted from NYSE due to the price deficiency notice?
What triggered NYSE's non-compliance notice for Solo Brands (DTC) in February 2025?
