GameStop Corporation (NYSE: GME) shares soared 22% higher in the regular and after-hours sessions combined on Monday.
What Happened: The video game retailer said Monday that it had completed its previously announced “at-the-market” equity offering in a statement.
GameStop completed the sale of 3.5 million shares of common stock and generated gross proceeds before commissions and expenses of nearly $551 million.
“Net proceeds will be used to continue accelerating GameStop’s transformation as well as for general corporate purposes and further strengthening the Company’s balance sheet,” as per the statement.
Also in April, GameStop issued an irrevocable notice of redemption to redeem $216.4 million in principal amount of its 10% Senior Notes due 2023 on April 30.
GameStop said the early redemption will cover the entire amount of its outstanding 10% Senior Notes, which makes up all its long-term debt.
Why It Matters: Investor and Director Ryan Cohen’s turnaround plan was featured in a Bloomberg report Monday, which led to a spike in the shares, followed by another spike in the after-hours due to the at-the-market program announcement.
See Also: GameStop Plan For Stock Sale ‘Understandable’ — Analyst Says Fundamentals Healthy
The report said that GameStop is seeking a new CEO to compete against Amazon.com, Inc (NASDAQ: AMZN) and others as it pursues an e-commerce centric transformation.
GameStop was the second most mentioned ticker on the Reddit forum r/WallStreetBets at press time after Microvision, Inc (NASDAQ: MVIS), according to Quiver Quantitative’s tracker.
The retail investor discussion forum was responsible earlier in the year for leading short squeezes in shares of GameStop along with AMC Entertainment Holdings Inc (NYSE: AMC), Blackberry Ltd (NYSE: BB), and Nokia Oyj (NYSE: NOK).
Price Action: GameStop shares closed nearly 11.7% higher at $168.93 on Monday and gained 9.22% in the after-hours session to $184.50.
Read Next: Microvision Becomes New WallStreetBets Favorite: What You Need To Know
Photo courtesy: EPIC via Wikimedia
(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
