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GameStop shares plunged 11% in premarket trading after announcing share sale plan

Tiger Newspress2021-04-05

GameStop plunged 11% in premarket trading.Company Can Sell Up to 3.5 Million Shares and Intends to Use Any Proceeds to Further Accelerate Transformation and Strengthen Balance Sheet。

GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today announced that it has filed a prospectus supplement withthe U.S. Securities and Exchange Commission (“SEC”), under which it may offer and sell up to a maximum of 3,500,000 shares of its common stock (the “Common Stock”) from time to time through an “at-the-market” equity offering program (the “ATM Offering”). The Company intends to use the net proceeds from any sales of its Common Stock under the ATM Offering to further accelerate its transformation as well as for general corporate purposes and further strengthening its balance sheet. The timing and amount of any sales will be determined by a variety of factors considered by the Company.

Common Stock will be offered through Jefferies LLC (“Jefferies”), which is serving as the sales agent. Jefferies may sell Common Stock by any lawful method deemed to be an “at-the-market offering” defined by Rule 415(a)(4) of the Securities Act of 1933, as amended, including without limitation, sales on any existing trading market. Sales may be made at market prices prevailing at the time of a sale or at prices related to prevailing market prices. As a result, sales prices may vary.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment83

  • DasTrader
    ·2021-04-06
    That’s amazing news! 
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  • MrPrickles
    ·2021-04-06
    This is good news, potentially shows they believe the squeeze could happen because they could sell anytime, not a specific date! Longtwrm this is great for GME, they are usingthis unique opportunity to grow the company. Excited!!!
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  • JasonBarry
    ·2021-04-06
    Up up up!
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  • Jo5tarz
    ·2021-04-05
    Buy the dip!
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    Fold Replies
    • Lucky03
      looks like that always worked !
      2021-04-06
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  • 滚筒
    ·2021-04-05
    $GameStop(GME)$where come the flush...You like my share, now take it...[哇塞] 
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  • Ronnex
    ·2021-04-05
    Damnn
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  • Sunder
    ·2021-04-05
    Safe to Moon
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  • lamwl
    ·2021-04-05
    I like this stock
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  • AndyQuak
    ·2021-04-05
    Gogo
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  • Yawnyawns
    ·2021-04-05
    @Smellabcdefg hijklmn opqrs tuv wxyz
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  • zackt69
    ·2021-04-05
    Buy the dip
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  • Andaroo
    ·2021-04-05
    Manipulation at its finest.Gme to the moon
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  • DenDenBear
    ·2021-04-05
    Reply and like thanks
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  • DenDenBear
    ·2021-04-05
    Reply and like thanks
    Reply
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  • Jrywong
    ·2021-04-05
    Time to join the shorts?
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  • roninwofws
    ·2021-04-05
    Omg
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  • Jefflim
    ·2021-04-05
    Exciting
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  • Laapreecoorn
    ·2021-04-05
    The end perhaps?
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  • w3tan
    ·2021-04-05
    Too speculative. Better to exit. No fundamental
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  • Daveb
    ·2021-04-05
    The share price would have to be $285 for them to even reach $1 billion in capital! They're sending a message, and I'll show you the math to prove it!DiscussionSo yes, it's understandable that we are all upset by the dilution that will occur when they issue new shares, but here's the real deal. They said up to $1 billion was the max amount to be raised by doing this. Well, $1 billion divided by the max of 3.5 million shares equals $285 and change. This means one of two things, either they expect the price to get back up to at least $285, which is the minimum price they can issue shares for and get their maximum money raised of $1 billion, or that they will not be able to raise the full limit that they've imposed in which case they would end up issuing all the shares and not maximizing the
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