(Bloomberg) — GameStop Corp. raised about $2.14 billion from a stock sale program as it benefited from a stock rally after Keith Gill discussed the stock following his return to YouTube.
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The video game retailer has now raised more than $3 billion through share sales in the past month, as retail investors have driven the shares higher. The latest sale of 75 million shares implied an average price of about $28.49 each, according to Bloomberg calculations based on a Tuesday statement.
The stock rose more than 5% to $32.27 in after-hours trading, but remains well below its June peak of $48. The stock rose shortly after 1:30 p.m. in New York on Tuesday, a possible indication that the selling pressure was over before the stock rose 23% to close at $30.49.
Last week, GameStop unexpectedly reported earnings and announced its plan to sell millions of new shares just hours before Gill, who goes by the name “Roaring Kitty,” made his long-awaited return to YouTube, attracting speculators. GameStop more than doubled in four days before shares tumbled Friday after the fundraising plan was announced.
The sale is in addition to the $933 million GameStop raised last month and comes on top of the $1.08 billion it had in cash and equivalents at the end of the last quarter. Jefferies LLC is acting as sales agent for the offering, the filing said. The company plans to use the catch for general corporate purposes, which may include acquisitions and investments.
Fellow retailer AMC Entertainment Holdings Inc. also completed a share sale earlier this year.
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