Solo Brands, Inc. Announces Corporate Simplification to Establish a Single Class of Common Stock and Limit Its Tax Receivable Agreement

Core Viewpoint - Solo Brands, Inc. is simplifying its organizational structure to align with shareholder interests and expects significant cash savings from these strategic actions [1][2][6] Group 1: Organizational Changes - The company is eliminating its umbrella partnership C corporation (Up-C) structure to limit material liability for potential cash payments under its Tax Receivable Agreement (TRA) [1][6] - Outstanding shares of Solo Brands Class B common stock held by former TRA parties will be cancelled, and corresponding units of Solo Stove Holdings, LLC will be exchanged for shares of Solo Brands Class A common stock on a one-for-one basis [3] Group 2: Financial Implications - The simplification of the corporate structure is expected to reduce future cash tax payments by an estimated $10 million over the next five years [6] - Solo Brands anticipates realizing approximately $0.5 million in annual savings from reduced compliance and financial reporting costs associated with having a single class of common stock outstanding [6] Group 3: Company Overview - Solo Brands is headquartered in Grapevine, TX, and operates a portfolio of lifestyle brands including Solo Stove, Chubbies, Isle, and Oru, focusing on innovative products in the outdoor and apparel industries [4]