- GameStop rose 7% in early trading on Tuesday after raising $551 million in stock sales.
- Its stock offering is aimed at accelerating its e-commerce transformation, the company said.
- Earlier this month, GameStop said CEO George Sherman will step down by July 31.
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GameStop’s stock climbed 7% on Tuesday after the company said it raised $551 million through an equity offering to fund its transition to e-commerce.
Shares in the company gained nearly 12% on Monday, and are up more than 800% this year driven by a Reddit-fanned trading frenzy.
The video-game retailer said it sold 3.5 million shares in an “at-the-market” offering. Based on the proceeds it generated, Insider estimates the shares were sold at around $157.43.
“Net proceeds will be used to continue accelerating GameStop’s transformation as well as for general corporate purposes and further strengthening the company’s balance sheet,” a statement said.
Earlier this month, the company announced CEO George Sherman will step down from his position on July 31 or upon the appointment of a successor.
Activist investor Ryan Cohen, who owns nearly 13% of GameStop, is leading major moves at the company and intends to transform it into the Amazon of gaming. Jenna Owens, a former Amazon and Google executive, was recently named GameStop’s new COO.
The retailer’s booming stock suggests that four of its departing executives can sell their shares near GameStop’s historically high levels. Sherman himself will be receiving roughly $169 million on his way out, according to the Wall Street Journal.
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