Rite Aid Corporation announced January 3 that the New York Stock Exchange (NYSE) has notified the company that it is no longer in compliance with NYSE continued listing standard rules because the per share trading 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 $1.00 per share over a consecutive 30 trading-day period.
Shares of the drugstore chain have fallen 64 percent over the past year. Rite Aid’s stock has hovered under $1 per share over the past month, breaking the NYSE’s rule. At presstime on January 11, the Camp Hill, PA-based drug chain’s shares were trading at 81 cents.
Rite Aid has been left to pick up the pieces after two merger plans failed in recent years. In 2015, it agreed to sell nearly 4,600 grocery stores to Walgreens for $17.2 billion. After nearly two years of review by the Federal Trade Commission, which cited antitrust concerns, the large federal agency would only allow a portion of the deal to proceed. That decision resulted in a restructuring of that deal in which Walgreens acquired 1,932 Rite Aid stores (and three distribution centers) for $4.4 billion.
That left Rite Aid weakened and in early 2018 it announced it had struck a deal to merge with supermarket chain Albertsons. However, Rite Aid shareholders voiced their unhappiness with the terms of that deal and it was pulled off the table on August 8, a day prior to a shareholder vote, when it became clear that the merger would not be approved by Rite Aid’s holders.