Apr 5 (Reuters) – GameStop Corp shares fell 13% on Monday after the video game maker said it could sell up to 3.5 million titles in its bid to take advantage of its rise in the stock market after the frenzy. unleashed by Reddit financial forums against big hedge funds.
The stock sale would fetch the company more than $ 670 million based on Thursday’s closing price of $ 191.45 per share.
GameStop has gained more than 900% so far this year on the stock market and at one point traded at $ 484.95 per share, when retail investors took bets against the large Wall Street hedge funds that had placed it positions short.
GameStop said it would use the proceeds from the sale of shares to expedite a change in its business model to online operations, a plan that is being pushed by one of its major shareholders on the board, Ryan Cohen.
The company said it filed the notice of the sale transaction with the US Insurance and Securities Commission.
Separately, GameStop said its global sales for the period ended April 4 were up 11%.
In pre-Wall Street trading, the company’s shares fell to $ 166.
(Report by Uday Sampath in Bengaluru. Edited in Spanish by Marion Giraldo)