The actions of GameStop Corp. extended gains in premarket Wall Street on Tuesday after the video game retailer said it raised nearly $1 billion from a stock sale program amid renewed interest in the call. stock meme.
Shares of the Grapevine, Texas-based company are up 23% putting the stock on track to gain $1.6 billion in market capitalization.
The company, which has not revealed at what price the titles were sold, has explained that the transaction was an “at market” offeras announced on May 17.
“GameStop filed a prospectus supplement with the US Securities and Exchange Commission to offer and sell up to a maximum number of 45,000,000 common shares from time to time through the ATM Program. The Company sold the maximum number of shares registered under the ATM Program for aggregate gross proceeds (before commissions and offering expenses) of approximately 933.4 million dollars“, he communicated.
On Friday, the Video game retailer reported that it had taken advantage of a wave of trading at the beginning of the month to sell 45 million shares and raise about $933 million.
Furthermore, he has made it known that he intends to use these proceeds for general corporate purposeswhich may include acquisitions and investments.
What are meme actions
“Meme stocks” are shares of companies that experience extremely volatile and unusual price movements, often driven by the activity of retail investors on social media platforms.
GameStop took center stage in the market in recent sessions after the return of ‘Roaring Kitty’ to social networks, which revived the ‘boom’ of meme stocks.
Although the euphoria lasted only two days, since, as the analysts anticipated, it was “unlikely” that the madness of 2021 would be repeated due to a different macroeconomic environmentthe decrease in savings and ones lower trading volumes.
It should be remembered that ‘Roaring Kitty’ is the pseudonym he uses on social networks Keith Gilla former commercial for Massachusetts Mutual Life Insurance, who rose to fame between late 2020 and early 2021 for being one of the leaders of a community organized through the ‘Reddit’ platform that With their purchases, GameStop’s stock market value skyrocketed.
Source: Ambito
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