Rite Aid Corp. has announced that the New York Stock Exchange informed the company that it is no longer in compliance with the organization’s continued listing standards.
Rite Aid stock closed at 53 cents per share on October 4. It has been trading below a dollar since late August. NYSE may compel a delisting if a company’s stock has been trading below $1 for a consecutive 30-day trading period.
Rite Aid pointed out that NYSE rules provide the company with certain cure periods and that its common stock will continue to trade on the exchange during the cure periods, subject to its compliance with other continued listing requirements. The company added that the current noncompliance with the NYSE listing standards does not affect the company’s ongoing business operations or its U.S. Securities and Exchange Commission reporting requirements, nor does it trigger any violation of its material debt or other obligations. Rite Aid pointed out that it has been engaged in reviewing and continues to review strategic alternatives to recapitalize, refinance or otherwise optimize its capital structure, which may ultimately result in its pursuing one or more significant corporate transactions or other remedial measures. The review includes an evaluation of options to regain compliance with the NYSE’s continued listing standards.
Rite Aid has been in an ongoing process of settling lawsuits against it arising from prescriptions for opioid drugs, generating speculation that it may file for Chapter 11 bankruptcy protection.
