GameStop (GME) has applied for the sale of 3.5 million shares of common stock with the US Securities and Exchange Commission. With the sale proceeds, the GME stock will accelerate its distribution network, strengthen its balance sheet, and work toward its general corporate goals. It will be decided in the future when and at what price the placement will take place. According to market projections, the GME stock will not make more than a billion dollars in profits from the sale of shares.
Top 5 Tech Stocks to Buy in 2024
Don't let the chaos of rising interest rates, potential recession, tighter credit issues, higher oil prices, and incessant geopolitical issues chase you from the markets. Instead, just wait it out. With too much fear in the market, go bargain hunting with tech stocks. We have complied a report with the five of the best ways to profit within this industry.
"Top 5 AI Stocks to Buy in 2024."
Click here to sign up for our free report & newsletter, plus bonus offer "Elon Musk just Tiggered a BOOM in These Stocks"
Sponsored
Following the news, the GME stock’s shares fell -2.35% on Monday, reaching a low of $164.81 and ending the day at $195.00. At the end of trading during the session, 13.99 million shares were traded, representing a 69.27% decline from the session average of 45.54 million shares. GME closed its last trading session at $186.95.
An SPO was already made for $ 100 million by GameStop. However, Due to regulatory restrictions, the GME stock was unable to arrange the securities placement since December 2020.
Shares of GameStop rose in value by hundreds of percent in the second half of January 2021. In the face of intense demand, the GME stock has decided to sell additional shares. However, US regulation requires issuers to report their earnings when selling shares. GameStop’s financial quarter ended on January 31. Due to the early start of the year, the GME stock was behind schedule with its financial statements, so it could not use the strong rally to sell securities.
However, Management did not release preliminary earnings data, fearing regulatory risks. In prior warnings, the SEC said it would monitor how companies market shares in a volatile manner.
A few days later, GameStop reported preliminary unaudited sales results for the nine-week fiscal 2021, which kicked off for it in February. Revenue for the period increased by 11% compared with the same period last year.
