(Bloomberg) — Shares of GameStop Corp. rose in late trading after the retailer’s favorite announced it had raised nearly $1 billion through a stock sale program.
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The video game retailer took advantage of the trading boom earlier this month by selling 45 million shares to raise about $933 million, according to a statement Friday. The stock rose as much as 25% in extended trading to reach $23.80, but remains well below the peak of nearly $65 it reached on May 14.
The move mirrored that of meme stock darling AMC Entertainment Holdings Inc., which benefited from stock rallies earlier this month when both stocks saw highs without fundamental updates. Movie theater shares rose along with GameStop in late trading, rising 2.9% to $4.98 at 4:36 p.m. in New York.
The sudden outbursts earlier this month were sparked by a post from the “Roaring Kitty” account on .
GameStop’s so-called at-the-market program was announced earlier this month, a move that allowed the bank to create shares for sale, with proceeds added to the pile of cash the company said it had before the launch would be approximately $1.1 billion. financing. The company plans to use the catch for general corporate purposes, which may include acquisitions and investments.
The video game retailer’s underlying business has struggled, with most gamers choosing to download new titles rather than visit physical stores. As part of its stock-selling maneuver, GameStop previously provided a glimpse into its activities in recent months. The company has struggled, with net sales below two estimates as it focuses on cost cutting.
–With help from Matt Turner.
(Updates everywhere)
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