GameStop Corp. (GME) shares experienced a surge in extended trading on Monday following the company’s announcement of completing its at-the-market offering program. This program, initially revealed on September 10th, allowed GameStop to offer and sell up to 20 million shares of its common stock. The video game retailer successfully sold the maximum number of shares authorized, generating gross proceeds of approximately $400 million.
GameStop plans to utilize the net proceeds from this offering for general corporate purposes. These purposes may encompass a range of activities, including potential acquisitions and strategic investments.
This move by GameStop underscores its commitment to leveraging its popularity among retail investors. The company has capitalized on the volatility of its stock in recent years, raising significant amounts of cash through similar offerings. As of the end of the second quarter, GameStop held a substantial $4.204 billion in cash, cash equivalents, and marketable securities.
The success of this offering demonstrates the continued interest in GameStop from retail investors, who have played a key role in driving the company’s stock price fluctuations in recent years. GameStop shares closed the regular trading session up 1.34% at $22.31, and continued to climb in after-hours trading.
