GameStop (NYSE:GME) stock is on the rise Tuesday after the retail company announced the completion of a stock offering.
According to GameStop, it has closed an “at-the-market” equity offering program. This saw it selling a total of 3.5 million shares of GME stock and generating aggregate gross proceeds of roughly $551 million.
GameStop says it already has plans for how to spend that money. The struggling video game retailer plans to allocate it toward accelerating its transformation to an e-commerce business, general corporate purposes, and strengthening its balance sheet.
To go along with today’s news, GameStop also reminded investors about its Senior Note redemption from earlier this month. This saw it redeeming $216.4 million in principal amount of its 10.0% Senior Notes due 2023 on April 30, 2021. The company makes sure to mention that this covers all of its long-term debt.
GameStop has been on a wild ride these last couple of years. The retailer was already struggling before the pandemic hit and things weren’t looking good for it. However, a massive short squeeze earlier this year sent shares rocketing higher.
Unfortunately for GME stock, a short squeeze can’t last forever and shares did start falling. Even so, the stock is still trading well above what it was at when the year started. It’s also been making progress on its transformation plan.
The company brought in Chewy (NYSE:CHWY) co-founder Ryan Cohen to help with this. Now Cohen is serving as the Chairman of the company and is making major changes. That includes shakeups that have seen several leaders changed out for new blood. It’s still unclear if GME will come out of all this for the better, but it’s definitely a story investors should keep tabs on.
GME stock was up 6.3% as of Tuesday morning and is up 942.3% since the start of the year.
GameStop isn’t the only meme stock that investors took a liking to this year.
Several others have seen gains as Redditors and retail traders place bets on them. That includes MicroVision (NASDAQ:MVIS), AMC Entertainment (NYSE:AMC), and others. Investors can get up to speed on these stocks below.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.