GameStop Raises $933 Million From Past Week of Stock Sales
Videogame retailer filed with the SEC last Friday to sell up to 45 million shares of common stock at prevailing market rates
GameStop GME 3.71%increase; green up pointing triangle has completed the share offering it launched a week ago in the wake of a stock rally, saying it sold the maximum number of shares it had registered for $933.4 million in proceeds.
The videogame retailer filed with the Securities and Exchange Commision last Friday to sell up to 45 million shares of common stock at prevailing market rates. The move came after a weeklong share price run-up reminiscent of the meme stock rally that rocked markets in early 2021, though shares then retreated in the days leading up to the filing.
GameStop said after the bell Friday that it has sold the maximum amount of shares it had registered and intends to use proceeds for general corporate purposes, including potential acquisitions or investments.
The company filed for the offering last week at the same time that it reported preliminary first-quarter results showing an expected loss of $27 million to $37 million for the 13 weeks ended May 4. That narrowed from a $50.5 million loss in the same quarter a year ago. Sales are expected to hit $872 million to $892 million, down from $1.24 billion in the year-ago quarter.
Shares closed the market down 20% on May 17 and slid 15% more in the current week since to close at $19 on Friday.
After the market closed and GameStop disclosed the completion of its stock sale, shares rose 19% to $22.61.