Rite Aid Board Selects 1-for-20 of Reverse Stock Split Ratio
April 10 2019 - 4:26PM
Business Wire
Common Stock to Begin Trading on a
Split-adjusted Basis on April 22, 2019
Rite Aid Corporation (NYSE: RAD) announced that its Board of
Directors has approved a reverse stock split of the company’s
common stock at a ratio of 1-for-20. The reverse stock split was
previously approved by stockholders at a Special Meeting of
Stockholders held on March 21, 2019.
Rite Aid's common stock will begin trading on a split-adjusted
basis on the New York Stock Exchange (NYSE) at the market open on
April 22, 2019. Once effective, the reverse stock split will reduce
the number of shares of common stock issued and outstanding from
approximately 1.08 billion to approximately 54 million.
No fractional shares will be issued as a result of the reverse
stock split. In lieu thereof, the company’s transfer agent will
aggregate all fractional shares and sell them as soon as
practicable after the effective time at the then-prevailing prices
on the open market. After the transfer agent’s completion of such
sale, stockholders who would have been entitled to a fractional
share as a result of the reverse stock split will instead receive a
cash payment from the transfer agent in an amount equal to their
respective pro rata share of the total proceeds of that sale.
The objective of the reverse stock split is to ensure that Rite
Aid regains full compliance with the NYSE share price listing rule
and maintains its listing on the NYSE. As previously announced,
Rite Aid will regain compliance with the NYSE per share price
listing rule if at the last trading day of any month during the
six-month cure period, or at July 3, 2019, the end of the six-month
cure period, the Company has at least a $1.00 share price and has
maintained at least a $1.00 average closing share price over the
preceding 30 consecutive trading days.
The trading symbol for Rite Aid's common stock will remain
“RAD.” The new CUSIP number for Rite Aid's common stock following
the reverse stock split is 767754 872.
About Rite Aid Corporation
Rite Aid Corporation is one of the nation's leading drugstore
chains with fiscal 2018 annual revenues of $21.5 billion.
Information about Rite Aid, including corporate background and
press releases, is available through the company's website at
www.riteaid.com.
Important Notice Regarding Forward-Looking Statements
Statements in this release that are not historical, are
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Such statements include, but are not limited to, statements
regarding the timing of the reverse stock split, the potential
benefits of a reverse stock split, including but not limited to
continued listing on the New York Stock Exchange, the potential for
a higher stock price and any assumptions underlying any of the
foregoing. Words such as “anticipate,” “believe,” “continue,”
“could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,”
“project,” “should,” and “will” and variations of such words and
similar expressions are intended to identify such forward-looking
statements.
These forward-looking statements are not guarantees of future
performance and involve risks, assumptions and uncertainties,
including, but not limited to, the possibility that the reverse
stock split may not have its intended effects and that factors
unrelated to the reverse stock split may impact the per share
trading price of our common stock; our ability to successfully
execute and achieve benefits from our leadership transition plan
and organizational restructuring, including our chief executive
officer search process, and to manage the transition to a new chief
executive officer and other management; the potential for
operational disruptions due to, among other things, concerns of
management, employees, current and potential customers, other third
parties with whom we do business and shareholders; the success of
any changes to our business strategy that may be implemented under
our new chief executive officer and other management; our ability
to achieve cost savings through the organizational restructurings
within the anticipated timeframe, if at all; possible changes in
the size and components of the expected costs and charges
associated with the organizational restructuring plan and the
outlook for and future growth of Rite Aid; our high level of
indebtedness and our ability to make interest and principal
payments on our debt and satisfy the other covenants contained in
our debt agreements; general economic, industry, market,
competitive, regulatory and political conditions; our ability to
improve the operating performance of our stores in accordance with
our long term strategy; the impact of private and public
third-party payers continued reduction in prescription drug
reimbursements and efforts to encourage mail order; our ability to
manage expenses and our investments in working capital; outcomes of
legal and regulatory matters; changes in legislation or
regulations, including healthcare reform; and our ability to
achieve the benefits of our efforts to reduce the costs of our
generic and other drugs; risks related to the pending sale of the
remaining Rite Aid distribution centers and related assets to
Walgreens Boots Alliance, Inc., including the possibility that the
transactions may not close, or the business of Rite Aid may suffer
as a result of uncertainty surrounding the pending transactions.
These and other risks, assumptions and uncertainties are more fully
described in Item 1A (Risk Factors) of our most recent Annual
Report on Form 10-K and in other documents that we file or furnish
with the Securities and Exchange Commission, which you are
encouraged to read. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated
or anticipated by such forward-looking statements. Accordingly, you
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they are made. Rite Aid
expressly disclaims any current intention to update publicly any
forward-looking statement after the distribution of this release,
whether as a result of new information, future events, changes in
assumptions or otherwise.
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INVESTORS:Byron Purcell(717) 975-5809
MEDIA:Susan Henderson(717) 730-7766
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