By Dhirendra Tripathi
Investing.com – GameStop (NYSE:GME) shares rose more than 6% during Tuesday’s trading as the company completed its at-the-market fund-raising program of $1.26 billion in fresh equity.
The company sold 5 million shares of common stock to raise gross proceeds before commissions and offering expenses of approximately $1.12 billion.
GameStop will use the proceeds for general corporate purposes as well as for investing in growth initiatives and maintaining a strong balance sheet, the company said in a note.
This is the second time the company has raised money through an at-the-market offering in less than two months. In April, it raised $551 million through the sale of 3.5 million shares.
The fund raising is one of the many initiatives the company has chalked out to acquire a digital-focused avatar for its gaming portfolio.
This has included repaying debt prematurely, revamping its board and top management and expanding its fulfillment network with a new facility in York, Pennsylvania.