GameStop, the famously-volatile "meme stock" that rose to $347.51 in January, is about to issue up to 3.5 million shares to help raise money for its business.
Today GameStop announced that it will sell 3.5 million common stock in an at-the-market sale price. The current market rate for GME is $191.45, and the company warns of extreme volatility in the stock. Investors are to take caution as the shares could lead to "significant material loss."
In a recent SEC filing where the company outlines its prospectus, GameStop says it will use the funds broadly across its business, from debt repayments (the company owes $244 million in long- and short-term debt) to its new ambitious e-commerce plan.
"We intend to use the net proceeds of this offering, if any, for working capital and general corporate purposes and to further strengthen our 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."
Check below for pictures of the relevant information, including offering terms and the plan of distribution: