Sometimes volatility is a good thing. If you’re GameStop Corp (NYSE: GME), evidently it’s a great thing. The company this morning revealed that they have completed their previously announced at-the-market equity offering, after just eight trading days.
The financing, which saw the company sell shares directly on the open market to shareholders, in total saw the issuance of 5.0 million common shares. The sale generated gross proceeds of $1.13 billion, before commissions and offering expenses, significantly strengthening the balance sheet of the company.
Proceeds from the financing are to be used for general corporate purposes and growth initiatives, along with maintaining a strong balance sheet.
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The sizable ATM offering was initially announced the evening on June 9, with the news being tucked within the firms first quarter financial results. At the time, the total value of the shares to be sold under the offering was estimated to be roughly $1.51 billion based on the prevailing market price.
GameStop Corp last traded at $200.37 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.
