GameStop shareholders met virtually this morning to vote on five proposals. GME stockholders approved all items on the meeting docket including Proposal 5 which paves the way for the board to execute a stock split at their discretion.
The shareholder meeting was quickly executed by GameStop, who provided the 2022 Proxy Statement to investors back in April.
Here's a breakdown of all the proposals voted on at the meeting:
- Elect six directors, each to serve as a member of the Board of Directors until the next annual meeting of stockholders and until such director’s successor is elected and qualified
- Adopt and approve the GameStop Corp. 2022 Incentive Plan
- Provide an advisory, non-binding vote on the compensation of the company's named executive officers
- Ratify the Audit Committee’s appointment of Deloitte & Touche LLP as independent registered public accounting firm for the fiscal year ending January 28, 2023
- Approve an amendment to the company's Third Amended and Restated Certificate of Incorporation to increase the number of authorized shares of Class A Common Stock (the “common stock”) to 1,000,000,000
I'm honored to be re-elected to the GameStop board of directors. $GME— Larry Cheng (@larryvc) June 2, 2022
A majority of shareholders voted in favor of all proposals, including the re-election of the board of directors. Compensation plans for new hires and the board were also approved at the meeting, but the big news is certainly the approval of Proposal 5 which paves the way for a GME stock split. The effective date for the "Authorized Shares Amendment" will become effective on the date it is filed with the Secretary of State of Delaware. GameStop's board also reserves the right to exercise discretion with respects to the timing of the stock split. The Proxy Statement does not that GameStop's "board reserves the right to not proceed with a Stock Split at all," even though it has been approved by shareholders.
GameStop's stock is currently trading higher on the day, following mixed Q1 2022 earnings results. The company's CEO addressed the shareholders at the meeting saying that he loves the support, and that the company remains focused on their turnaround. With the NFT Marketplace set to launch in Q2 2022, only time will tell if the work being done behind the scenes at GameStop will lead to profits down the line. Keep it locked on Shacknews as we will be keeping our eyes on GameStop's investor relations website in anticipation of more information being dumped about today's shareholder meeting and the upcoming stock split.
Header image courtesy of Nintega-Dario on DeviantArt.
This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.
At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, or his company Virtue LLC had the following positions:
Long GameStop via GME shares (partially-hedged with out-of-the-money put options)
Long GameStop via GME call options