Stockholders voted 78% in favor of the reverse split.
CAMP HILL, PA – Rite Aid Corp. announced that its stockholders approved a reverse stock split of the company’s common stock at Thursday’s special meeting of stockholders. According to preliminary tabulations, with approximately 987 million eligible votes cast, stockholders voted 78% in favor of the reverse split.
Rite Aid’s board of directors may select a reverse stock split ratio of either 1-for-10, 1-for-15 or 1-for-20 in due course. The decision to effect the reverse stock split and the effective date of the reverse stock split will be determined by the Board at a future date. The reverse stock split, if implemented, would become effective upon filing of a charter amendment with the Delaware Secretary of State.
A reverse stock split would reduce the total number of Rite Aid’s issued and outstanding common shares, resulting in an increase in the price per share. The objective of the reverse stock split is to ensure that Rite Aid regains full compliance with the New York Stock Exchange (NYSE) share price listing rule and maintains its listing on the NYSE.
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.