Solo Brands, Inc. revealed on Thursday, February 27 that it had received a notice on February 25 from the New York Stock Exchange (NYSE) that the company was not in compliance with the NYSE’s continued listing standards as a result of the average closing price of the company’s Class A common stock being less than $1.00 per share over a consecutive 30 trading-day period.
In accordance with the NYSE rules, the company said it 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,” the company said in a media release.
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 said that it 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 $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month.
Solo said the NYSE notice does not affect the company’s business operations or its reporting obligations with the Securities and Exchange Commission (SEC), nor does it trigger any violation of its debt obligations.
Image courtesy Solo Brands, Inc.
