RAD stock opened this morning at about 61 cents per share, a market capitalization of $36 million.
A Filing Long Overdue
Rite Aid is telling shareholders the Chapter 11 filing in New Jersey is an effort to “support long-term success.” It plans to sell its pharmacy benefit manager, now called Elixer Solutions and says it has a commitment for $3.45 billion in new financing. It also hopes the filing will help it settle lawsuits over the opioid crisis.
Rite Aid was left as two chains, one on each coast, and a small pharmacy benefit manager then called Envision.
A short squeeze was attempted early in October, with the stock at 52 cents. That seems to have faded out over the weekend.
RAD Stock: What Happens Next?
Common stockholders are likely to be wiped out in the bankruptcy filing.
Only vultures are coming to Rite Aid’s rescue.
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As of this writing, Dana Blankenhorn held a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.