(Reuters) – GameStop (NYSE:) made nearly $933.4 million by selling 45 million shares, the struggling video game retailer said on Friday, sending its shares up more than 12% after the bell.
The company relies largely on brick-and-mortar stores and has struggled with customers turning to e-commerce companies to buy video games and collectibles.
It had announced its stock sale plan earlier this month amid a retail buying frenzy fueled by the social media return of “Roaring Kitty” Keith Gill, whose bullish calls on the company sparked the 2021 meme stock rally.
The deal was structured as an “at market” offering, in which shares are sold at the prevailing market price rather than a predetermined price.
The rally in shares of GameStop, which has become a poster child for the retail mania, started after Gill shared a meme and several video clips from movies.
The stock more than quadrupled from late April through May 14, then gave back about 60% of those gains, as of Friday’s close.
GameStop did not disclose the price at which it sold the shares, but based on Reuters calculations they were sold at an average price of $20.74 each. Shares were currently trading at $21.93.
The company said it will use the proceeds from the sale for general corporate purposes, which may include acquisitions and investments.
GameStop said last week that it expects first-quarter net sales to fall to between $872 million and $892 million, compared with $1.24 billion a year earlier.
Theater chain AMC, another retail darling, had also completed a $250 million at-the-market stock sale program last week.
