Rite Aid Corporation (NYSE: RAD) is at risk of being delisted from the New York Stock Exchange after receiving written notification of non-compliance with NYSE rules on Jan. 3, 2019. The NYSE requires at least a USD 1.00 average closing price of a listed company’s stock over a consecutive 30 trading-day period. Over the past year, Rite Aid shares have fallen 64% and have hovered below USD 1.00 per share over the past month, placing the Company at risk of being delisted.
The Company has six months from Jan. 3rd to raise its average share price above USD 1.00 for the month. Subject to stockholder approval, Rite Aid said it is considering a reverse stock split of the company’s common stock in order to cure the share price non-compliance.
The Company can regain compliance at any time during the six-month cure period if, on the last trading day of any calendar month during the cure period, Rite Aid has a closing share price of at least USD 1.00. It must also have an average closing share price of at least USD 1.00 over the 30 trading-day period ending on the last trading day of that month, or on the last day of the cure period. Over the next six-month period, Rite Aid’s common stock will continue to trade as usual on the NYSE as the Company is in compliance with all other continued listing standard rules.
This warning from the New York Stock Exchange comes after a series of setbacks for the Company. In 2017, Rite Aid’s merger with Walgreens Boost Alliance (NASDAQ: WBA) was obstructed by regulators, resulting in a largely forced sell-off of stores. In 2018, a merger between Rite Aid and supermarket chain Albertsons was opposed by shareholders and the plan was scrapped. The Company responded by rebuilding its board of directors.