GameStop Corp. said it could shell out hundreds of millions of dollars from stock sales in the coming months as the video game retailer turns to public markets to support its recovery plan.
The company said Monday it would sell up to 3.5 million shares, adding that the timing and amount of any share sale would include various factors.
Although it has been able to sell up to $ 100 million in stock since December, GameStop – unlike AMC Entertainment Holdings Inc. – not raising cash in this way, as retail investors have helped fuel a remarkable surge in the company’s share price.
GameStop’s share traded below $ 3 in April last year, as the pandemic resulted in the temporary closure of its brick-and-mortar locations, although it closed at just under $ 19 in 2020. Shares peaked at $ 483 in intraday trading on January 28, only to trade just below $ 39 about three weeks later. Shares closed at $ 191.45 on Thursday, an increase of more than ten times since the beginning of the year.
Last month, GameStop said it was going to evaluate whether it was buying plans for shares.