Solo Brands, Inc. Appeals NYSE Delisting Determination

Rhea-AI Summary

Solo Brands (NYSE: DTC) has formally appealed NYSE Regulation's decision to delist its Class A common stock. The delisting determination was made on April 22, 2025, due to "abnormally low" price levels under Section 802.01D of the Listed Company Manual. Trading of DTC stock on NYSE has been suspended, and shares are currently trading on the OTC Pink Market under symbol "DTCB".

Interim CEO John Larson stated that the current trading price and market capitalization don't reflect the company's true value. To regain compliance with NYSE listing standards, Solo Brands plans to implement a reverse stock split. During the appeal period, the stock will remain listed on NYSE (though suspended) while the company continues to operate under SEC regulations and NYSE requirements.

[ "Company taking proactive steps with reverse stock split plan to regain compliance", "Management confident in company's underlying value being higher than current market price", "Company maintains listing status during appeal period" ]

Positive

• None.

Negative

• Trading suspended on NYSE due to 'abnormally low' stock price
• Stock relegated to OTC Pink Market trading
• Potential permanent delisting from NYSE if appeal fails
• Company's financial situation serious enough to warrant delisting notice

Insights

Financial Markets Expert

NYSE has moved to delist Solo Brands due to abnormally low stock price, halting NYSE trading while the company appeals and plans a reverse split to regain compliance.

The NYSE's determination to commence delisting proceedings for Solo Brands represents a significant market development with several important implications for the company's shareholders. According to the press release, NYSE Regulation has deemed the company's Class A common stock "no longer suitable for listing" specifically citing "abnormally low" price levels pursuant to Section 802.01D of the Listed Company Manual.

As a direct consequence, trading of Solo Brands' shares has been immediately halted on the NYSE, and the stock has transitioned to the OTC Pink Market under the new symbol "DTCB" where trading continues. This transition from a major exchange to the OTC market typically results in reduced liquidity and potentially wider bid-ask spreads for shareholders.

While the company has formally appealed the NYSE's determination, it's important to understand that during this appeal period, the stock remains technically listed but trading on the NYSE continues to be suspended. Management has indicated plans to implement a reverse stock split, which would reduce the number of shares outstanding while proportionally increasing the share price – a common strategy companies employ to address price-related listing deficiencies.

Interim CEO John Larson's statement that "the current trading price and market capitalization of Solo Brands does not reflect the value of the Company" represents management's perspective on the situation. The company has committed to continue operating in compliance with SEC regulations and other NYSE listing requirements during the appeal process.

For context, exchange listing standards exist to ensure listed companies maintain certain financial thresholds that support fair and orderly markets. When stocks trade at extremely low prices for extended periods, exchanges may determine those securities no longer meet their marketplace standards, as appears to be the case here.

GRAPEVINE, Texas, May 06, 2025 (GLOBE NEWSWIRE) -- Solo Brands, Inc. (NYSE: DTC; OTC: DTCB) (“Solo Brands” or “the Company”) a leading portfolio of lifestyle brands (Solo Stove, Chubbies, Isle and Oru) that are redefining the outdoor and apparel industries, today announced that it has formally appealed the determination of the staff of NYSE Regulation to commence proceedings to delist the Company’s Class A common stock from the New York Stock Exchange (“NYSE”).

As previously announced, on April 22, 2025, the staff of NYSE Regulation determined that the Company’s Class A common stock was no longer suitable for listing based on “abnormally low” price levels pursuant to Section 802.01D of the Listed Company Manual and immediately halted trading of the Company’s Class A common stock. As a result, the Class A common stock is currently being quoted on the OTC Pink Market under the symbol “DTCB”.

The Company is appealing the determination of the staff of the NYSE Regulation and, if the Company is successful in its appeal, NYSE may resume trading of the Class A common stock. During the appeal period, the Class A common stock will remain listed on the NYSE, though trading on the NYSE will continue to 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,” said John Larson, Solo Brands Interim President and Chief Executive Officer.

During the appeal period, the Company intends to continue to operate in compliance with public company SEC regulations and other NYSE listing requirements.

About Solo Brands, Inc.

Solo Brands, headquartered in Grapevine, TX, is a leading omnichannel lifestyle brand company. Leveraging e-commerce, strategic retail relationships and physical retail stores, Solo Brands offers innovative products to consumers through five lifestyle brands – Solo Stove and TerraFlame, known for firepits, stoves, and accessories; Chubbies, a premium casual apparel and activewear brand; ISLE, maker of inflatable and hard paddle boards and accessories; and Oru Kayak, innovator of origami folding kayaks.

Contacts:
Mark Anderson, Senior Director of Treasury & Investor Relations
Investors@solobrands.com

Three Part Advisors, LLC
Sandy Martin: smartin@threepa.com, 214-616-2207
Steven Hooser: shooser@threepa.com, 214-872-2710

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 outcome of our appeal of the NYSE determination to commence proceedings to delist our Class A common stock, continued quoting of our Class A common stock on the Pink Market, future financial position, turnaround efforts, strategic transformation goals, future growth and shareholder value, our ability to continue as a going concern, our plans and strategy to improve our liquidity, the expected benefits of operational improvements and restructuring efforts, and seasonal trends. 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,” “forecasts,” “guidance,” “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: failure to regain compliance with the continued listing requirements of the NYSE, upon appeal or otherwise, or any future failure to meet such requirements; the impacts of the trading halt of our Class A common stock from the NYSE and quotation on the OTC Pink Market; our ability to continue as a going concern; our ability to realize expected benefits from our strategic plans, our ability to implement any restructuring and cost-reduction efforts; our limited liquidity; our ability to mitigate the impact of new and increased tariffs and similar restrictions on our business; our reliance on third-party manufacturers, which operate mostly outside of the U.S., and problems with, or the loss of, our suppliers or an inability to obtain raw materials; our dependence on cash generated from operations to support our business and our growth initiatives; the limits placed by our indebtedness to invest in the ongoing needs of our business; our ability to maintain and strengthen our brand to generate and maintain ongoing demand for our products; our ability to design, develop and introduce new products; 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; risks associated with our international operations; our inability to sustain historic growth rates; our ability to cost-effectively attract new customers and retain our existing customers; the highly competitive market in which we operate; our failure to maintain product quality and product performance at an acceptable cost; the impact of product liability and warranty claims and product recalls; business interruptions resulting from fluctuations in the price of our Class A common stock; geopolitical actions, natural disasters, or pandemics; and the ability of our largest 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, 2024, 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.

FAQ

Why is Solo Brands (DTC) being delisted from NYSE?

Solo Brands is facing delisting from NYSE due to 'abnormally low' price levels according to Section 802.01D of the Listed Company Manual, as determined by NYSE Regulation on April 22, 2025.

Where can I trade Solo Brands (DTC) stock now?

Solo Brands stock is currently trading on the OTC Pink Market under the symbol 'DTCB' while NYSE trading is suspended during the appeal process.

What is Solo Brands doing to prevent NYSE delisting?

Solo Brands has formally appealed the NYSE delisting determination and plans to implement a reverse stock split to regain compliance with NYSE listing standards.

Will Solo Brands stock remain listed on NYSE during the appeal?

Yes, Solo Brands stock will remain listed on NYSE during the appeal period, though trading will continue to be suspended on the exchange.

What happens if Solo Brands loses its NYSE delisting appeal?

If Solo Brands loses its appeal, the company's Class A common stock will be permanently delisted from the NYSE and would continue trading on the OTC Pink Market.