Camp Hill, Pa. Rite Aid Corp. said Tuesday that it was notified by the New York Stock Exchange that the drugstore retailer is no longer in compliance with NYSE listing standards because the price of its common stock has fallen below the NYSE’s share price rule.
The NYSE requires the average closing price of a listed company’s common stock to be at least $1 per share over a consecutive 30 trading-day period.
Rite Aid said it was notified of non-compliance on July 30.
Under NYSE rules, Rite Aid can regain compliance during a six-month cure period by having an average closing share price of at least $1 for a 30-day trading period ending on the last day of a calendar month and at least a $1 per share price on the last day of that month or on the last day of the cure period.
On July 27, Rite Aid’s board of directors approved a reverse split of the company’s common stock, subject to stockholders approval, if such a split is necessary to cure the price deficiency.