CAMP HILL, PA – Rite Aid Corp. announced today that its board of directors has approved a reverse stock split of the company’s common stock. The reverse stock split is intended to enable Rite Aid to regain full compliance with the New York Stock Exchange (NYSE) listing rules. The reverse stock split is subject to stockholder approval.
The company plans to hold a Special Meeting of Stockholders, at which stockholders are being asked to vote on a proposal to adopt and approve the reverse stock split, at 8:30 a.m., local time, on March 21, 2019, at the offices of Skadden, Arps, Slate, Meagher & Flom, LLP in New York. Rite Aid’s board has set February 5, 2019 as the record date for stockholders entitled to vote at the special meeting.
If stockholders approve the reverse stock split, Rite Aid’s Board will select a reverse stock split ratio of either 1-for-10, 1-for-15 or 1-for-20 so that, depending on the ratio chosen, either 10, 15 or 20 shares of issued and outstanding common stock will convert into one share of common stock. The price of each common share is expected to increase so that a stockholder would have fewer but higher priced shares. A reverse stock split would not have any impact on the voting and other rights of stockholders, and will have no impact on the company’s business operations or any of its outstanding indebtedness.
Even if the reverse stock split is approved by our stockholders, the board of directors may delay or abandon the reverse stock split at any time prior to the effective time of the reverse stock split, if the Board of Directors determines that the reverse stock split is no longer in the best interests of the Company or our stockholders.
As previously announced, Rite Aid will regain compliance with the NYSE share price listing rule if at the last trading day of any month during the six-month cure period, or at July 3, 2019, the end of the six-month cure period, the Company has at least a $1.00 share price and has maintained at least a $1.00 average closing share price over the preceding 30 consecutive trading days. Rite Aid’s common stock continues to be listed on the NYSE and will continue to trade as usual during the six-month cure period.
Rite Aid will file a preliminary proxy statement related to the special meeting later today. The company expects to file and mail its definitive proxy material in due course. Rite Aid encourages stockholders to read the proxy statement and other material relating to the special meeting, as it contains important information. Stockholders may obtain a free copy of the proxy statement and other documents that the company files with the SEC at the SEC’s website at www.sec.gov, or from the company by directing a request to Rite Aid Corporation, 30 Hunter Lane, Camp Hill, Pennsylvania 17011, Attention: Investor Relations, or at www.riteaid.com.