GameStop Corp. he said he could raise hundreds of millions of dollars in stock sales in the coming months as the video game retailer goes to public markets to help support his investment 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.
Although it has been able to sell up to $ 100 million in shares since December, GameStop – unlike AMC Entertainment Holdings Inc. – had resisted raising money this way as retail investors went help fuel a noticeable rise in the company’s stock price.
GameStop shares traded below $ 3 per month in April last year as the pandemic caused the temporary closure of its brick locations, though it ended in 2020 shortly. less than $ 19. Shares reached $ 483 in intraday trading on Jan. 28, only to trade just below $ 39 about three weeks later. Shares closed Thursday at $ 191.45, up more than tenfold since the start of the year.
Last month, GameStop said it had been evaluating whether to increase the size of its stock purchase plans.