Rite Aid: Stock meets NYSE rule, split canceled

Drugstore operator Rite Aid Corp. said Wednesday it regained compliance with the New York Stock Exchange's minimum share price rule.

The company canceled a planned reverse stock split as a result.

Rite Aid stock fell to an all-time low of 20 cents in March, but has staged a recovery in the last few months. The stock reached a high of $1.97 in June, and closed at $1.51 on Tuesday.

NYSE rules require stocks to maintain a minimum average price of at least $1 per share to remain listed. Rite Aid fell out of compliance with that rule in October, as its average closing price was under $1 for a 30-day period. As a result, the company's shares could have been delisting from the NYSE.

Rite Aid then said it would merge shares at a rate of 10-to-1, 15-to-1 or 20-to-1, which would have multiplied its stock price and allowed it to regain compliance. But in the wake of the global financial crisis, the NYSE suspended its minimum listing rule.

The company delayed the stock split, which had been approved by the board and by shareholders. Rite Aid is no longer facing immediate risk of delisting, as the company said the exchange informed it that its average closing price was above $1 for the 30 trading days ended June 30.

The rule went back into effect Tuesday.

In afternoon trading, Rite Aid shares rose 5 cents, or 3.3 percent, to $1.56.