Rite Aid shareholders green-light to reverse stock split
Rite Aid’s shareholders are officially on board with a reverse stock split proposed by the company’s board of directors. At a special meeting on Thursday, shareholder voted 78% in favor of the reverse split, the company said.
With the shareholders’ blessing, Rite Aid’s board can initiate a reverse stock split ratio of either 1-for-10, 1-for-15 or 1-for-20 for the company’s common stock. The company said the board would determine whether or not to initiate the reverse stock split and its effective date at a later time.
The move would reduce Rite Aid’s total number of issued and outstanding common shares, increasing the price per share. One of the goals is to regain compliance with the New York Stock Exchange share price listing rule. Under the rule, Rite Aid’s stocks will stay listed if at on the last trading day of any month in its six-month cure period or on July 3 (the end of the cure period) its stocks maintain at least $1 average closing share price for the previous 30 days.
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