Rite Aid has announced that the New York Stock Exchange informed the retailer that it is no longer in compliance with NYSE continued listing standards set forth in Section 802.01B (the Minimum Market Capitalization Standard), and Section 802.01C (the Minimum Stock Price Standard) of the exchange's Listed Company Manual.
Under the NYSE rules, the company is provided with certain cure periods and the company’s common stock will continue to be listed and traded on the NYSE during the cure periods, subject to the company’s compliance with other continued listing requirements.
The current noncompliance with the NYSE listing standards does not affect the company’s ongoing business operations or its U.S. Securities and Exchange Commission reporting requirements, nor does it trigger any violation of its material debt or other obligations. As previously disclosed, the company has been engaged in reviewing strategic alternatives to recapitalize, refinance or otherwise optimize its capital structure, which may ultimately result in the company pursuing one or more significant corporate transactions or other remedial measures.
[Read more: Rite Aid reportedly preparing to file for bankruptcy]
The Ongoing Review includes an evaluation of available options to regain compliance with the NYSE’s continued listing standards. The company can provide no assurances that it will be able to regain compliance with the NYSE’s continued listing standards or otherwise and maintain the listing of its shares on the NYSE or the results of the Ongoing Review.
[Read more: Rite Aid posts Q4, full-year results]