On May 15, 2024, traders displayed trading information for GameStop and AMC Theaters on the New York Stock Exchange.
Brendan McDermid | Reuters
game station The troubled video game retailer said Friday it made nearly $933.4 million from the sale of 45 million shares, sending its shares up more than 12% after hours.
The company relies mostly on brick-and-mortar stores and has been grappling with customers turning to e-commerce companies to buy video games and collectibles.
The company disclosed its stock sale plans earlier this month when the return of “Roaring Kitten” Keith Gill, who was bullish on the company, on social media sparked a retail buying frenzy The rhetoric spurred a rise in meme stocks in 2021.
The deal is structured as an “on-the-market” offering, in which shares are sold at the prevailing market price rather than a predetermined price.
GameStop has become the poster child for the retail frenzy, with its stock price rising after Gill shared a meme and several clips from the movie.
The stock more than quadrupled from late April to May 14, but gave up about 60% of its gains as of Friday’s close.
GameStop did not disclose the price at which it sold its shares, but they were sold at an average price of $20.74 per share, according to Reuters calculations. The current share price is $21.93.
Proceeds from the sale will be used for general corporate purposes, which may include acquisitions and investments, the company said.
GameStop said last week it expected first-quarter net sales to fall to a range of $872 million to $892 million, compared with $1.24 billion in the same period last year.
theater chain aviation medical centerAnother retail darling also completed a $250 million “market” stock sale last week.
