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GameStop seems to be taking advantage of its inflated stock price: The video game retailer says it will sell millions of its shares. Some merchants on Reddit, which helped to increase the value of the company’s shares, are eager to buy.
The company filed a lawsuit with the SEC to offer up to 3.5 million shares, according to a press release on Monday. GameStop has yet to say exactly how many shares will be available or when they will go on sale, but noted that profits will not exceed $ 1 billion and will go “for its transformation, as well as for general corporate purposes and further strengthening its balance sheet.”
Also on Monday, GameStop said it saw an 11% increase in sales from last year during the first nine weeks of its fiscal years. GameStop’s shares fell sharply when the market opened on Monday, but have since rebounded to $ 182.65 in the afternoon, which is timid for a 5% drop in the day.