GameStop to invest in ‘growth initiatives’ after raising $1.12 billion through ATM Offering
GameStop has raised $1.12 billon dollars after selling 5 million shares of common stock through an at-the-market equity offering program (ATM Offering).
The U.S. video game retailer announced the move in a short press release, but had already indicated it was considering the sale back in June.
The company said it will use the proceeds for general corporate purposes as well as for “investing in growth initiatives and maintaining a strong balance sheet.”
GameStop has seen a 25.1 percent rise in net sales during the first quarter of the 2021 fiscal year, despite making a net loss of $40.8 million — which was down on the loss of $108 million it reported the year prior.
The company also recently named former Amazon veterans Matt Furlong and Mike Recupero as its new CEO and CFO, and said the duo had been tasked with “building a technology company and investing in growth.”