### Introduction
GameStop (NYSE: GME) announced that it intends to sell up to 75 million Class A common shares of its own stock, valued at $0.001 per share, in compliance with an Open Market Sale AgreementSM (Sales Agreement) dated May 17, 2024, with Jefferies LLC. This sale follows the previous sale of 45 million shares, which generated nearly $933.4 million in total gross proceeds. With this move, they hope to cash in on the current market for shares while also providing more liquidity in their stock.
#### Description of the Sales Agreement
Pursuant to the terms of the sales agreement with Jefferies LLC, GameStop has the right to offer and sell shares through Jefferies as its sales agent. Currently, the company has the arrangement in place to sell 45 million shares. The company now plans to offer and sell as many as 75 million extra shares with the updated prospectus supplement.
Stock prices and market volatility
The New York Stock Exchange trades GameStop under the symbol “GME.” When the stock closed on June 6, 2024, its last reported sale price was $46.55 per share. The stock has been extremely volatile price-wise, trading between $10.01 and $48.75 from February 4, 2024, through June 6, 2024. Throughout this time period, approximately 1.7 million to just under 207 million shares were traded on an average daily basis. GameStop disclosed that it did not experience any significant factors that could have caused it to report wild fluctuations in its business (BFM).
### Risk factors for investors
GameStop stock has had extreme price fluctuations since January 2021 that appear unrelated to the company’s underlying business fundamentals. Such volatility can be potentially disastrous to investors hoping for a return or gain on their stock purchase, as sudden drops in the stock price could result in large losses. The prospectus supplement’s “Risk Factors” section encourages investors to delve deeper into the potential risks that could impact their respective businesses.
### SALES METHODS AND AGENT COMPENSATION
Under this prospectus supplement, the sales of GameStop’s common stock will be deemed an “at-market offering,” as defined in Rule 415(a)(4) under the Securities Act of 1933. Jefferies LLC is not required to sell any specific number of shares, but it will use its commercially reasonable efforts to sell the shares on GameStop’s behalf. Each sold share will earn the sales agent a commission of up to 1.5% of the gross sales price. Furthermore, we expect Jefferies LLC to be considered a “underwriter” under the Securities Act, and we will compensate it with underwriting commissions or discounts. GameStop has agreed in the sales agreement to indemnify the sales agent and provide for contributions to the sales agent under the Securities Act.
### Conclusion
GameStop said it plans to use the new share sale to take advantage of market conditions and give the company greater financial flexibility. This shift may present an opportunity for the company, but it carries significant risk due to the company’s volatility. Investors should carefully review these factors before making an investment decision, and only consider taking a long position on GameStop after examining the risks detailed in GameStop’s offering circular.
About the author
Stay Safe Online: Internet Security Essentials
Protect yourself online with essential internet security tips. Learn how to safeguard your data, avoid cyber threats, and maintain privacy in the digital world. Stay safe and secure.
Penis Enlargement Pills and Creams: What to Know
Explore the truth about penis enlargement pills and creams, their effectiveness, safety, and alternative male enhancement methods.
Effective Penis Enlargement Exercises: What to Know
Explore proven penis enlargement exercises and natural enhancement techniques to boost your confidence and performance.
Male Enhancement Supplements: Boost Your Performance
Elevate your vitality and performance with natural male enhancement supplements designed to boost libido, stamina, and testosterone levels.
Effective Penis Enlargement Techniques Explained
Explore expert insights on proven penis enlargement techniques to enhance size and confidence safely and effectively. Get the facts here.
Penis Enlargement Surgery: What You Need to Know
Explore the ins and knacks of penis enlargement surgery, a detailed overview of options, recovery, and potential results for informed decisions.
Related
The Future of GPT: Transformative Potentials and Challenges
#### Introduction GPT - Generative Pretrained Transformer introduced a new and unimaginable concept to AI and Natural Language Processing (NLP). Now at the cusp of further development, it is important to evaluate the future course that GPT technology will take. In this analysis, I will discuss what can be achieved, potential applications, ethical considerations as well as societal impacts. #### Potential Advancements **1. We have improved the conceptual framework and computational efficiency. The further improvement of the GPT model is through modifying its architecture to optimize the efficiency and accuracy. The researchers said they are now contributing to developing higher performing, low- computational power variants of transformers. Sparse attention, model distillation and advances in optimization algorithms are also expected to be major techniques. **2. Multimodal Capabilities** Indeed, we expect the future versions of GPT to become multimodal, meaning that in […]
iOS 18: Unleashing the Future of Mobile Innovation
iOS 18 promises a groundbreaking leap in mobile innovation, empowering users with cutting-edge features, unparalleled performance, and seamless integration across Apple devices.
Nvidia Shares Plunge to $120 After Stock Split, Despite Massive Growth
Nvidia Shares Plunge to $120 After Stock Split After revealing their long-awaited stock split, AI and semiconductor giant Nvidia saw their share price drop to the lowest level since 2022. This move reveals the tech company's extraordinary stock performance, which is driven by AI. ## Key Insights Monday was a big day for Nvidia as it started trading after a stock split. Based on the July 2, 2021, closing price of $1,210, the company effectuated a 10-for-1 stock split, so that each Screaming Eagle shareholder received ten new shares for each share owned, with no change in ownership percentage. Nvidia shares opened Monday at $120, down slightly. However, they finished within 5 percent of the intraday split-adjusted high of $125.59 they reached the previous week. Nvidia's stock split is a godsend, as stock appreciation is becoming a stock market curse […]
Nvidia Overtakes Apple as Market Capitalization Surpasses $3 Trillion
Read More As market capital surges past Apple, Nvidia is now worth more than $3 trillion. This marks a significant milestone in Nvidia's unprecedented market penetration. Nvidia, which broke $3 trillion in market value on Wednesday—making it the world's second-largest company according to that metric—was only one of the winning stocks. Resurgent demand for its artificial intelligence (AI) chips, one of the most exciting tech markets at the moment, fuels this explosive growth. The 5% increase in the US chip designer's shares resulted in a market capitalization of $3.01 trillion, just above Apple's $3 trillion. Earlier this year, Apple was overtaken by Microsoft as the world's most valuable listed company. The Age of AI: Nvidia Reigns Nvidia's stock has seen a surge in investors, and major tech players like Google, Microsoft, and Meta have been investing billions in their AI […]
OpenAI’s ChatGPT Discord Down: Manual Workarounds Adopted by Users
OpenAI ChatGPT Outage Affects Users Worldwide On June 4, the ChatGPT from OpenAI went down globally with a prolonged outage. The incident began approximately at 07:00 UTC, and ten minutes later, around 07:21 UTC, OpenAI recognised the issue and started to investigate.The company initiated mitigation efforts at 8:30 UTC after identifying the issue. By 10:00 UTC, they were still working to fix the underlying issue that caused the full outage. Issues on the server side cause ChatGPT downtimes. ChatGPT stopped responding to some users who said it was not working on mobile or web and that it looked like a server-side issue. The chatbot's self-diagnostic attempts resulted in some customers receiving a "Internal Server Error" message, confirming the back-end issues. As has become tradition, the internet took to social media to voice their frustration (and, in some cases, outright refusal […]
Why is LinkedIn essential for marketers today?
LinkedIn for Marketers: Essential Today Introduction LinkedIn is widely regarded as the superior social network platform due to its unique features that offer broader applications for marketers on other social networks. This post explores why you should promote your content on LinkedIn and how its business and professional audience, clean ad inventory, and creative advertising formats can help you generate better ROI than any other platform. 1. Open-source software LinkedIn supports the exchange of knowledge. LinkedIn significantly outperforms other platforms in terms of knowledge sharing, which is both widely used and increasingly in demand. Not just any social platform is showing a decrease in public sharing; LinkedIn in the spring of 2023 noted a 41% increase in content sharing compared to the same timeframe in 2021. The increase in sharing offers a unique window for brands, leaders, and influencers to […]
Be the first to leave a comment