Camp Hill, Pa. Rite Aid Corp. said Wednesday stockholders approved a reverse stock split that aims to increase share price and regain compliance with New York Stock Exchange (NYSE) listing rules.
Rite Aid received notice from the NYSE in October that its shares had fallen below the $1 limit for more than 30 days, meaning the stock was no longer in compliance with listing standards. To regain compliance, its shares have to be worth more than $1 apiece for 30 consecutive days, by the end of a six-month period.
Rite Aid said shareholders approved the reverse split of common stock at a ratio of 1-for-10, 1-for-15 or 1-for-20 to be selected by the company's board. A reverse split reduces a company's share total and increases the share price.
Shareholders also voted at a special meeting Tuesday to reduce the number of authorized common shares.
The chain said it has until April 16 to regain compliance with the share price-listing rule and maintain its NYSE listing. Rite Aid's board expects to select the ratio by the end of the company's fiscal year in February.