Shares of GameStop Corp. GME,
fell 9.7% in trading before trading on Monday, after the video game and consumer electronics retailer announced plans to sell up to 3.5 million shares of its common stock. The company plans to use the proceeds of the “market” offer, which represents approximately 5% of the outstanding shares, to accelerate its transformation, for general corporate purposes and to strengthen its balance sheet. Separately, GameStop said total sales for the first nine weeks through April 4 increased 11% over the same period last year, including 5.3% growth in February and an increase in 18% in March. GameStop said sales were negatively affected by temporary store closures and other mandatory restrictions as a result of the COVID-19 pandemic, which caused a 13% decrease in the store base over the same period a year ago. year. The decline in shares comes after it rose 5.8% last week, to cause a two-week decline of 31.6%. Over the past three months, shares have shot up 1,002.2% over the past week, while the S&P 500 SPX,
has gained 7.9%.