June 22 (Reuters) – Video game retailer GameStop Corp (GME.N) said on Tuesday it had raised around $ 1.13 billion in its latest stock offering, further benefiting from a price hike in its social media-induced action.
The company, whose shares have risen more than 960% this year, was the spark in January in a battle between hedge fund short sellers and a group of small investors organizing online.
It remains one of the hottest and most visible “memes stocks” and rose nearly 9% in pre-market trading on Tuesday.
The company, like other social media stocks that have lit Wall Street since January, has sold millions of dollars in new stocks in the wake of what institutional players say are speculative stock moves unwarranted by their activities .
Movie operator AMC Entertainment (AMC.N), another play, made two stock shows in three days earlier this month, while Torchlight Energy (TRCH.O) on Monday increased its own. sale of shares at $ 250 million.
GameStop said it would use the net proceeds of the offering, which is in addition to the $ 551 million raised in late April, for general corporate purposes as well as to invest in growth initiatives.
The company is trying to shift to e-commerce and recently hired a former Amazon manager as the new CEO to help them make the transition.
Its shares fell sharply when she announced the stock offering earlier this month and has fallen another 10% since, even after the first moves on Tuesday.
White Square Capital, a London-based hedge fund that suffered losses betting against GameStop in the first meme stock rally in January, is shutting down, the Financial Times reported on Tuesday.
Reporting by Eva Mathews in Bengaluru; Editing by Anil D’Silva
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