GameStop Corp. (NYSE:GME) announced on Tuesday that it has completed an “at-the-market” equity offering, raising approximately $2.14 billion in gross proceeds. This move comes shortly after Keith Gill, also known as “Roaring Kitty,” conducted his first livestream in three years, attracting over 600,000 viewers.
During his Friday livestream, Gill, a pivotal figure in the 2021 rally of GameStop’s stock, joked about memes and discussed the company with various disclaimers. The stock saw a nearly 40% drop by the session’s close.
GameStop reported selling the maximum 75 million shares registered under the program. Based on Reuters’ calculations, the average sale price per share was about $28.50, with the shares closing at $30.49 after Tuesday’s trading.
The company plans to use the proceeds for general corporate purposes, including potential acquisitions and investments.
Last week, GameStop unexpectedly released its first-quarter results ahead of schedule, revealing a 28.7% drop in revenue to $881.8 million and announcing the stock sale. CEO Ryan Cohen, who held an 8.6% stake as of June 10 according to a regulatory filing, saw his stake diluted from 10.5% as of May 22 due to the share sale, not personal divestment.
In May, GameStop raised $933.4 million by selling 45 million shares, having disclosed its share sale plan earlier that month amid a surge in retail buying spurred by Gill’s return to social media.
Gill, known for his bullish views on GameStop on YouTube and Reddit, has been instrumental in attracting a wave of retail investment to the struggling brick-and-mortar retailer.
Featured Image: IstockPhoto © Aleksandra Malysheva
