Despite its financial woes, drugstore chain Rite Aid (RAD) turned down a buyout offer from Spear Point Capital Management valued at more than $800 million.

Rite Aid released a statement Thursday about the bid rejection, which said the offer from Spear Point was “not creditable and did not warrant further exploration.”

"...the Spear Point proposal provided no evidence of financing, required multiple months of exclusivity and then called for Rite Aid to spend months soliciting competing offers," Rite Aid said in the press release. "In addition, Spear Point’s proposal was conditioned on none of the Company’s debt becoming due and payable upon a change in control, which contradicts the terms of nearly all of Rite Aid’s debt instruments. Furthermore, Spear Point has no track record of acquiring public companies the size and complexity of Rite Aid."

Rite Aid has a market capitalization of $424 million.

The rejection Spear Point’s offer may not be the end of negotiations between the two companies as a hostile tender directly to shareholders may be underway.

Even as Rite Aid sits with the $3 billion in distressed loans, Spear Point co-founder Ron Bienvenu told the New York Post: “This isn’t over. This is the beginning. There is real value here.”

While Rite Aid may have turned down Spear Point’s offer, it did say that it would “be responsive to credible proposals that will enhance stockholder value.”

As of Thursday at 2:40 p.m. ET, shares of Rite Aid were trading at $7.61, down 59 cents, or 7.2%.

A shopper exits a Rite Aid store in New York
A shopper exits a Rite Aid store in New York, June 23, 2010. REUTERS
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