Gamestop plans to sell $1,265 billion worth of shares in 2021
GameStop filed a prospectus with the Securities and Exchange Commission to sell up to 5 million shares (worth $1.265 billion at the time of writing) of its stock from time to time, in “at-the-market” offerings.
The funds it raises through these stock sales will be used for general corporate purposes, investing in growth initiatives and strengthening its balance sheet, the company said.
GameStop smashed first-quarter earnings forecasts and announced new top executives, while the election of a new chairman is expected to bring more changes to the one-time Reddit favorite. Even though, their stock fell later after they revealed the plans to sell more shares.
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Analysts expected the Grapevine, Texas-based video game retailer to post a loss of 82 cents a share, but they had losses of 45 cents a share on revenue of $1.28 billion.
As of May 1, the company had $770.8 million in cash, up from $635 million on Jan. 30.