GameStop Corp (NYSE: GME) this evening announced that it intends to conduct an absolutely massive at the market offering. The company will look to sell up to 5 million shares of the company under such an offering.
The announcement of the financing was made in connection with the filing of the firms first quarter financial results, wherein it reported net sales of $1.277 billion and a net loss of $66.8 million, along with negative adjusted EBITDA of $0.7 million. The company did not ascribe a value to the shares.
At current market prices, the total value of the shares to be sold under such an offering would effectively amount to a $1.51 billion at the market financing. This of course however is dependent upon prevailing market prices at the time of the sale of shares.
The offering however is not finalized, with the firm stated that “the Company intends to file with the U.S. Securities and Exchange Commission a prospectus supplement [..] under which the Company may offer and sell up to 5 million shares of its common stock, from time to time, in “at-the-market” offerings.“
Proceeds from the offering are reportedly to be used for general corporate purposes, which includes investing in growth initiatives and “maintaining a strong balance sheet.”
GameStop Corp last traded at $302.56 on the NYSE.
Information for this briefing was found via Sedar and GameStop Corp. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
The Economy That Cried Wolf (Of Wall Street)
(title card concept stolen from Martin Scorsese and Jesse Hawken) This past March, when the...