CAMP HILL, Pa.— Rite Aid Corp. announced that its board of directors has approved a reverse stock split of the company’s common stock at a ratio of 1-for-20. The reverse stock split was previously approved by stockholders at a Special Meeting of Stockholders held on March 21, 2019.
Rite Aid’s common stock will begin trading on a split-adjusted basis on the New York Stock Exchange (NYSE) at the market open on April 22, 2019. Once effective, the reverse stock split will reduce the number of shares of common stock issued and outstanding from approximately 1.08 billion to approximately 54 million.
No fractional shares will be issued as a result of the reverse stock split. In lieu thereof, the company’s transfer agent will aggregate all fractional shares and sell them as soon as practicable after the effective time at the then-prevailing prices on the open market. After the transfer agent’s completion of such sale, stockholders who would have been entitled to a fractional share as a result of the reverse stock split will instead receive a cash payment from the transfer agent in an amount equal to their respective pro rata share of the total proceeds of that sale.
The objective of the reverse stock split is to ensure that Rite Aid regains full compliance with the NYSE share price listing rule and maintains its listing on the NYSE. As previously announced, Rite Aid will regain compliance with the NYSE per 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.
The trading symbol for Rite Aid’s common stock will remain “RAD.” The new CUSIP number for Rite Aid’s common stock following the reverse stock split is 767754 872.