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GameStop (GME) files to sell up to 75 million more shares

GameStop has announced another secondary offering of shares, taking advantage of the stock's recent volatile moves higher.

Asif Khan

June 7, 2024 8:15 AM

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GameStop's stock has experienced a lot of volatile moves higher in recent weeks, and the company is taking advantage with its second share issuance in less than a month. This time up to 75 million GME shares will be issued.

Here's an excerpt from today's Form 8-K filed with the SEC:

Item 8.01 Other Events.

On June 7, 2024, GameStop Corp., a Delaware corporation (the “Company”), filed a prospectus supplement (the “Prospectus Supplement”) with the Securities and Exchange Commission (the “SEC”) in connection with the Company’s “at-the-market offering” program (the “Offering”) for the offer and sale from time to time through Jefferies LLC (the “Sales Agent”) of up to 75,000,000 shares of the Company’s Class A common stock, par value $0.001 per share (the “Common Shares”), pursuant to the Company’s existing Open Market Sale AgreementSM (the “Sales Agreement”) with the Sales Agent, dated May 17, 2024. Prior to the date hereof, the Company has sold an aggregate of 45,000,000 shares of its common stock for aggregate gross proceeds of approximately $933.4 million pursuant to the Sales Agreement.

The Common Shares are being offered and sold pursuant to the Company’s automatic shelf registration statement on Form S-3 filed with the SEC on May 17, 2024, which became effective immediately upon filing, and the Prospectus Supplement.

GameStop's stock is down over 20% on the news of the share offering, but the company also pre-announced its Q1 2024 earnings results posting a larger than expected loss of $0.11/share and a 28.7% decline in revenue from Q1 2023. GameStop's cash account will be bolstered by the secondary share offering announced today, but many will have their eyes on Roaring Kitty's YouTube livestream today at noon to see exactly what the investor plans to do with his 120,000 call options and five million shares of GameStop.

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.