PHARMACY

Rite Aid asks stockholders to back reverse common stock split

BY Michael Johnsen

CAMP HILL, Pa. Rite Aid on Monday reported that all three of the leading independent proxy advisory firms have recommended stockholders support its board of directors’ plan for a reverse split of Rite Aid common stock. All three firms have also recommended a vote for the company’s plan to reduce the number of authorized shares of Rite Aid common stock.

In an Oct. 28, report, Proxy Governance noted, “[Rite Aid] is seeking to boost its share price to a level that will ensure continued listing status and possibly attract broader institutional investment. If achieved, this may benefit all shareholders with higher long-term returns and a more stable stock price.”  

A Glass Lewis report issued the same day echoed support for the reverse stock split. “We agree with the board that it is in the best interest of the company to reduce the number of shares of common stock and thereby proportionally raise the per share price of the company’s common stock.”

And a Nov. 12 report issued by RiskMetrics stated, “The reverse stock split is necessary to avoid delisting of the company’s stock on the NYSE. In addition, if shareholders approve this proposal (the reverse stock split) and approve the second proposal, the company will reduce authorized shares by 67 percent.”

On Oct. 17, Rite Aid announced plans for a reverse stock split to ensure that Rite Aid regains compliance with the New York Stock Exchange’s share price listing rule. Stockholders are scheduled to vote on the reverse stock split at a special stockholders meeting on Dec. 2.

Once stockholders approve the split, Rite Aid’s Board will select a reverse stock split ratio of either 1-for-10, 1-for 15 or 1-for-20 so that, depending on the ratio chosen, either 10, 15 or 20 shares of issued and outstanding common stock will convert into one share of common stock The price of each common share would increase by the same ratio when the stock split takes effect.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
PHARMACY

Sepracor may get incentives to keep its business local

BY Alaric DeArment

MARLBOROUGH, Mass. Drug maker Sepracor might get tax breaks for building in its hometown.

The MetroWest Daily News reports that the company is constructing new buildings in Marlborough, Mass., and will create 250 new jobs. Local officials proposed the tax breaks to give Sepracor incentives for further development, and the company may save $4.1 million.

The city’s finance committee will vote on the proposal Monday.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
PHARMACY

H-E-B, RediClinic open largest U.S. retail clinic in Houston area

BY Antoinette Alexander

HOUSTON Clinic operator RediClinic has opened its 15th Houston-area convenient care clinic in the new H-E-B store that, according to the Convenient Care Association, is the largest retail-based clinic in the United States.

The 926-square-foot clinic features three exam rooms and a room specifically for blood draws.

“We are delighted to be expanding out footprint in our home market with the opening of our 15th Greater Houston clinic,” said Web Golinkin, chief executive officer of RediClinic. “The larger clinic design in H-E-B’s new Bunker Hill store enables us to treat more patients and gives us more flexibility in adding new services.”

RediClinic operates 21 clinics in H-E-B stores in Houston and Austin; and 15 clinics in Wal-Mart stores in Atlanta, Ga.; Fayetteville and Rogers, Ark.; Richmond, Va.; and Tulsa, Okla.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?