GameStop Corp. stated that it could raise hundreds of millions of dollars from stock sales in the coming months, as a video game retailer turns to public markets to help support its turnaround plan.
The company stated on Monday that it would sell up to 3.5 million shares, adding that the timing and size of any stock sale would make numerous factors better.
Though it has had the ability to sell up to $100 million in stock since December, Gamestop-unlike theater chain AMC Entertainment holdings Inc. had resisted raising cash in that manner as retail investors assisted in fueling an outstanding run up in the company’s stock price. Investors communicating on Reddit also fueled AMC shares.
GameStop’s stock traded under $3 apiece in April last year as the pandemic prompted the temporary closure of the company’s bricks-and-mortar locations. The shares ended in 2020 at just under $19.