GameStop Corp. said it could raise hundreds of millions of dollars from stock sales in the coming months as the video game retailer turns to public markets to support its turnaround plan.
The company said Monday it would sell up to 3.5 million shares, adding that the timing and amount of any stock sale would involve several factors.
While GameStop has had the opportunity to sell up to $ 100 million in stock since December, GameStop – unlike AMC Entertainment Holdings Inc. – is opposed to raising cash in this way, as retail investors have contributed to a remarkable increase in the company’s stock price.
GameStop’s stock traded below $ 3 each in April last year as the pandemic prompted the temporary shutdown of its physical locations, although it ended 2020 at just under $ 19. Shares reached 28 during intraday trading. peaked at $ 483 in January, only to trade just below $ 39 about three weeks later. Shares closed at $ 191.45 on Thursday, a more than tenfold increase since the start of the year.
Last month, GameStop said it had evaluated whether to increase the size of its stock-buying plans.