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Rite Aid gets NYSE share price noncompliance notice

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Stock will continue to trade as normal.

CAMP HILL, Pa. — The New York Stock Exchange (NYSE) has notified Rite Aid Corp. that it is no longer in compliance with continued listing standard rules because its stock price has fallen below the the exchange’s share price rule. The NYSE requires the average closing price of a listed company’s common stock to be at least $1 per share over a consecutive 30 trading-day period.

Rite Aid said it received written notification of the noncompliance on Thursday. In accordance with the NYSE’s rules, the chain has six months from the receipt of the notice to regain compliance with the  price condition or until the company’s next annual meeting of stockholders if stockholder approval is required, as would be the case to effectuate a reverse stock split, to cure the share price noncompliance. During this time period, Rite Aid’s common stock will continue to be listed and trade as usual. Rite Aid is in compliance with all other NYSE continued listing standard rules.

The retailer intends to pursue measures to cure the share price noncompliance, including through a reverse stock split of the company’s common stock, subject to stockholder approval no later than at Rite Aid’s next annual meeting, if such action is necessary for compliance. No date has been set for the company’s next annual meeting.

Under NYSE rules, Rite Aid can regain compliance at any time during the six-month cure period if on the last trading day of any calendar month Rite Aid has a closing share price of at least $1 and an average closing share price of at least $1 over the 30 trading-day period ending on the last trading day of that month or on the last day of the cure period.

 


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