Struggling Rite Aid Gets Delisting Warning From NYSE

Rite Aid Corporation has received a non-compliance warning from the New York Stock Exchange saying the drug store retailer no longer meets NYSE listing standards that include meeting the minimum market capitalization standard and the minimum stock price standard.

On Wednesday, October 4, the company’s stock closed at $0.53 per share. 

Under stock exchange rules, Rite Aid is provided with certain cure periods and the company’s common stock will continue to be listed and traded on the NYSE during the cure periods, subject to the Company’s compliance with other continued listing requirements. 

The current noncompliance with the NYSE listing standards does not affect its 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. 

As previously disclosed, Rite Aid 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 the retailer pursuing one or more significant corporate transactions or other remedial measures. 

In late September, the Wall Street Journal reported that following news of a possible Chapter 11 bankruptcy filing, Rite Aid could close between 400 and 500 locations. The company currently operates more than 2,300 retail pharmacy locations in 17 states.