Rite Aid will chop its share count by about 95% in a bid to push the remaining shares above minimum trading requirements on the New York Stock Exchange.
The board of the struggling drugstore chain approved a 1-for-20 ratio for a reverse stock split after shareholders did the same last month. That will cut the total number of outstanding shares from nearly 1.1 billion, to about 54 million.
Rite Aid shares slid below $1 in December, prompting a removal warning from the NYSE. The drugstore chain said Wednesday after markets closed that on April 22, its shares will start trading on a split-adjusted basis.
Shares closed at 57 cents Wednesday.
Rite Aid Corp., based in Camp Hill, Pennsylvania, runs 2,525 stores.