Tuesday, August 3, 2021
No menu items!

GameStop shares slide on plan for 3.5 million share sale

GameStop Corp shares fell 13% on Monday (April 5) after the video game retailer said it may sell up to 3.5 million shares as it tries to take advantage of the stock price surge following a Reddit-driven trading frenzy earlier this year.

The share sale would fetch the company more than $670 million at Thursday’s (April 1) closing price of $191.45. The shares have gained more than 900% so far this year and had at one point hit $482.95 as retail traders bet against Wall Street hedge funds that had shorted the stock.

GameStop said it would use the proceeds from the share offering to speed-up the shift in its business model to e-commerce, a plan that is being led by top shareholder and board member Ryan Cohen.

The company said it has filed the at-the-market equity offering prospectus with the U.S. Securities and Exchange Commission.

Separately, GameStop said global sales for the nine-week period ending April 4 rose about 11%.

Its shares were down at $166 in premarket trading.

(Production: Martin Veal, Mindy Burrows)

Latest News

Reese Witherspoon’s media firm to be sold to Blackstone-backed company

Academy award-winning actress Reese Witherspoon's media company, Hello Sunshine, is selling itself to a newly formed media...

Pentagon placed on temporary lockdown after nearby shooting

A shooting outside the Pentagon on Tuesday (August 3) resulted in several casualties after a Pentagon police officer was attacked, with law...

Biles returns to claim balance beam bronze, Guan wins gold

Simone Biles made a fearless return to competition on Tuesday (August 3), capping a tumultuous Tokyo Games with a bronze medal on...

Hazmat called for suspicious envelope at DHL

HOUSTON – The HFD hazmat team has determined that a suspicious envelope reported at a DHL facility last night did not contain...

Man injured in workplace accident on Humble Westfield Road

HOUSTON – A man was rushed to the hospital after sustaining a traumatic injury at a workplace on Humble Westfield Road.

More Articles Like This