(Times Of Update) – GameStop Corp. raised about $2.14 billion through a stock sales program as it took advantage of a stock market rally after Keith Gill talked about stocks following his return to YouTube.
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The video game retailer has now raised more than $3 billion in the past month through stock sales, as retail investors have propelled the stock higher. The latest sale of 75 million shares implied an average price of about $28.49 each, according to Times Of Update calculations based on a Tuesday release.
The stock rose more than 5% to $32.27 in after-hours trading, but remains well below the high of $48 reached in June. The stock rebounded shortly after 1:30 p.m. in New York on Tuesday, a potential indication that the selling pressure ended before the stock climbed 23% to close at $30.49.
Last week, GameStop unexpectedly released its results and revealed plans to sell millions of new shares just hours before Gill, who operates under the nickname “Roaring Kitty,” made her highly anticipated return to YouTube , attracting speculators. GameStop more than doubled in four days, before the stock crashed Friday after the fundraising plan was announced.
The sale adds to the $933 million GameStop raised last month and adds to the $1.08 billion it had in cash and equivalents at the end of last quarter. Jefferies LLC is acting as sales agent in connection with the offering, the filing said. The company plans to use the transport for general purposes, which may include acquisitions and investments.
Fellow retail trader AMC Entertainment Holdings Inc. also completed its own stock sale earlier this year.
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