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GameStop (GME) completes at-the-market sale of 45 million shares for $933.4 million in proceeds

GameStop has bolstered its balance sheet with the sale of 45 million shares.

Asif Khan

May 24, 2024 1:40 PM

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GameStop has completed its secondary offering of 45 million shares and has added another $933.4 million to its cash holdings.

Here's what the company said in a filing with the SEC today:

GameStop disclosed on May 17, 2024 that it filed a prospectus supplement with the U.S Securities and Exchange Commission to offer and sell up to a maximum amount of 45,000,000 shares of its common stock from time to time through the ATM Program. The Company sold the maximum number of shares registered under the ATM Program for aggregate gross proceeds (before commissions and offering expenses) of approximately $933.4 million.

GameStop intends to use the net proceeds from the ATM Program for general corporate purposes, which may include acquisitions and investments.

Power to the Players!
byu/TMWTB inSuperstonk

GameStop announced its plan to issue these shares last week, and also preannounced a revenue miss for the upcoming first quarter. GameStop's CEO Ryan Cohen has been awfully quiet on social media lately, leading many to guess what the purpose of this latest cash infusion could be. At the very least, shareholders should feel somewhat less worried with nearly $2 billion in cash and short-term securities on the GameStop balance sheet.

Shares of GameStop (GME) spiked to nearly $24/share in afterhours trading on the news of the completed ATM (at-the-market) share offering.

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.

Full Disclosure:

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

Long GameStop via GME call options

Asif Khan

CEO/EIC/EIEIO

Asif Khan is the CEO, EIC, and majority shareholder of Shacknews. He began his career in video game journalism as a freelancer in 2001 for Tendobox.com. Asif is a CPA and was formerly an investment adviser representative. After much success in his own personal investments, he retired from his day job in financial services and is currently focused on new private investments. His favorite PC game of all time is Duke Nukem 3D, and he is an unapologetic fan of most things Nintendo. Asif first frequented the Shack when it was sCary's Shugashack to find all things Quake. When he is not immersed in investments or gaming he is a purveyor of fine electronic music. Asif also has an irrational love of Cleveland sports.