(Bloomberg) — GameStop Corp. raised nearly $2.14 billion from a stock selling program as it benefited from a stock rally after Keith Gill raised shares following his return to YouTube.
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The video game retailer has now raised more than $3 billion over the past month through stock sales as retail investors drive up the stock price. The recent sale of 75 million shares means an average price of about $28.49 per share, according to Bloomberg calculations based on a statement issued Tuesday.
The stock rose more than 5% to $32.27 in after-market trading, however, still well below its June peak of $48. The stock rose on Tuesday just after 1:30 p.m. in New York, a possible indicator that the selling pressure was complete before the stock rose 23% to close at $30.49.
Last week, GameStop unexpectedly released earnings and unveiled a plan to sell millions of new shares just hours before Gill, who operates under the moniker “Roaring Kitty,” returned to YouTube, attracting speculators. GameStop stock more than doubled in four days, before the stock collapsed on Friday after announcing the fundraising plan.
The sale comes on top of the $933 million GameStop raised last month and adds to the $1.08 billion it had in cash and cash equivalents at the end of the last quarter. Jefferies LLC is acting as the sales agent for the bid, the filing said. The Company plans to use these funds for general corporate purposes, which may include acquisitions and investments.
Fellow beloved retailer AMC Entertainment Holdings Inc. also completed its bid. The sale of its own shares occurred earlier this year.
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