Shares of GameStop Corp saw a dip on Monday morning following the announcement that the gaming retailer may sell up to $1 billion worth of stock.
In a new SEC filing, GameStop said it may sell shares of its common stock having an aggregate offering price of up to $1 billion “but in no event more than [3.5 million] shares of our common stock.” Back in December, GameStop filed a prospectus supplement in connection with the offer and sale of shares under its sales agreement with Jefferies LLC.
No shares of common stock were sold under that previously filed prospectus supplement, which—as confirmed in Monday’s filing—has now been “replaced and superseded in its entirety” by the new prospectus supplement.
GameStop Corp shares, per an early Monday report from Reuters, fell 12 percent after the SEC filing went public. As previously reported, GameStop’s Reddit-spurred stock boom earlier this year failed to result in the gaming company taking immediate advantage thanks to to concerns over regulatory restrictions.
However, other companies that saw a Reddit-related boost—AMC among them—did sell stock following the movie-inspiring frenzy.
In March, it was announced that Ryan Cohen had been hired by GameStop to lead a planning committee aimed at steering the brand’s ongoing transformation.
“The Committee will continue to focus on identifying actions that can transform GameStop into a technology business and help create enduring value for stockholders,” a company rep said in a press release at the time. “It is responsible for evaluating areas that include GameStop’s current operational objectives, capital structure and allocation priorities, digital capabilities, organizational footprint, and personnel.”
Last week, Keith Gill—a.k.a. Roaring Kitty—shared screenshots to Reddit that reportedly showed his trading portfolio, revealing that—if accurate—he made a MarketWatch-estimated $25.2 million on his GameStop investments.
