GME Shares Plunge As Company Moves To Sell 3.5M New Shares
TYLER DURDEN, 05 April 2021
More than 2 months have passed since Robinhood shut off trading in Gamestop while the firm’s shares soared past the $400 mark, marking a historic confrontation between an army of GME-hodling “apes” and hedge funds like Melvin Capital, not to mention the mighty hedge fund-market maker Citadel, that would cement GME’s status as a favorite of the “Wall Street Bets” retail-trading army.
But for the first time since the intense retail interest made GME one of the most closely watched tickers on Wall Street, GameStop announced Monday morning that it would issue up to 3.5M new shares in an at-the-money offering. The proceeds will help GME accelerate its pivot to digital, the company said in a prospectus filed with the SEC.
The news isn’t exactly a surprise: some feared GME might announce a share offering during its earnings report last month, a report that, let’s remember, triggered a selloff in GME shares as the company offered few details about its Ryan Cohen-led turnaround strategy, disappointing investors.
