GameStop Corp. said it could raise hundreds of millions of dollars in stock sales in the coming months, while the video game retailer is heading to public markets to support its recovery plan.
The company said on Monday it would sell up to 3.5 million shares, adding that the timing and value of any sale of shares would involve a variety of factors.
Although it has had the capacity to sell up to $ 100 million in stock since December, GameStop – unlike AMC Entertainment Holdings Inc. – resisted cash collection in this way, as retail investors contributed to the remarkable rise in the company’s share price.
GameStop shares traded below $ 3 a piece in April last year as the pandemic caused the temporary closure of its brick and mortar locations, although it ended in 2020 with just under $ 19. The stock reached a high of $ 483 when trading during the day, January 28, to trade just under $ 39, about three weeks later. Shares closed at $ 191.45 on Thursday, up more than 10fold since the beginning of the year.
Last month, GameStop said it was evaluating whether to increase the size of its stock purchase plans.