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Share:
GameStop Corp. (NYSE: GME) shares are trading 16.17% lower in the early pre-market session at $160.50 on Monday.
What Happened: The dip follows the gaming retailer announcing plans to sell up to 3.5 million shares in an “at-the-market” equity offering through Jefferies LLC.
GameStop disclosed the plan in a prospectus filed with the U.S. Securities and Exchange Commission. The shares planned for the offering account for about 5% of the outstanding shares.
The retailer said it intended to use proceeds from the offering “for working capital and general corporate purposes,” alongside boosting its balance sheet, “which may include funding our transformation initiatives and product category expansion efforts, the repayment, refinancing, redemption or repurchase of our existing indebtedness, capital expenditures or the satisfaction of our tax withholding obligations upon the vesting of shares of restricted stock held by our executive officers and other employees.”
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