GameStop said it would issue more shares as the US video game retailer reported falling second-quarter revenue as consumers shunned bricks-and-mortar stores in favour of online purchases.
The company said on Tuesday that proceeds from the 20mn shares would be used “for general corporate purposes, which may include acquisitions and investments”.
At the closing price of $23.45, the new sale would bring in $479mn of cash, before fees, adding to its $4.2bn war chest.
GameStop, at the centre of the 2021 meme stock frenzy, said it would rein in costs and close “underperforming stores”.
The company reported quarterly revenue of $798.3mn, down from $1.16bn a year earlier. Net income was $14.8mn, compared with a net loss of $2.8mn a year earlier.
Shares were 3.3 per cent lower in after-hours trading.
