Rite Aid delays reverse split; buys time with NYSE

CAMP HILL, Pa. Rite Aid announced Monday morning that it has delayed effecting the company’s previously announced reverse stock split following the New York Stock Exchange's recent temporary suspension of its minimum share price listing rule.

Stocks listed on the NYSE must maintain at least a $1-per-share price. The suspension provides Rite Aid with additional time and flexibility to regain compliance with the NYSE rule.

Rite Aid continues to be listed and traded on the NYSE. Rite Aid’s stock closed at $0.22 per share on Friday and the average closing price of Rite Aid’s stock over the past month is $0.25.

The NYSE announced that it is suspending application of its share price rule until June 30, which extends Rite Aid’s cure period to regain compliance. Per the rules of the recent suspension, Rite Aid can now regain compliance by achieving the required $1 closing share price and $1 average closing share price over the preceding 30 consecutive days on any of the following dates — April 16, April 30, May 29, June 30 and Aug. 17. Before the temporary suspension of the share price rule, Rite Aid’s cure period was to end on April 16.

Rite Aid announced plans for either a 1-for-10, 1-for-15 or 1-for-20 reverse stock split last year, after being notified by the NYSE that it was no longer in compliance with its minimum share price rule. Shareholders approved the reverse stock split Dec. 2.

Rite Aid’s board of directors will determine the exchange ratio and timing of the reverse stock split, if implemented, prior to or immediately following the end of the suspension period based on market conditions, the company’s share price and NYSE rules at such time.