GameStop (GME) completes at-the-market 20 million shares offering raising $400 million of cash

GameStop intends to use the net proceeds for business purposes, which may include acquisitions and investments.

GameStop (GME) has been doing a whole lot lately, and the latest is a completion of its sale of 20 million shares. This at-the-market (ATM) offering program has raised $400 million in cash, before commissions and offering expenses.

GameStop (GME) issued a press release on September 23, 2024, stating that it has completed an at-the-market equity offering program. The company has sold 20,000,000 shares of its common stock with gross proceeds totalling approximately $400 million. GameStop intends to use the net proceeds for its business, which may include acquisitions and investments.

This latest sale of shares is the third time shareholders have been diluted this year, which has an impact on potential short squeezes. Outside of this, the company now has over $4.5 billion on its balance sheet and is valued at $9.5 billion. It will be interesting to see what GameStop opts to do with this new injection of cash.

Recently, GameStop CEO Ryan Cohen was fined an almost $1 million penalty. This is due to not filing a HSR form before finalizing his acquisition of more than half a million of Wells Fargo voting securities.

On the investor side, Roaring Kitty’s YOLO update in June showed 9 million GME shares and no call options held. As Asif Khan wrote, based on Gill’s previous posts to Reddit, “we can ascertain that he probably exercised 40,010 of his 120,000 GameStop $20 strike call options expiring on June 21, 2024 and sold the remainder to help finance his share purchase.”

Take a look at our GME topic page for our ongoing coverage of GameStop and the people close to the company.