GameStop today announced that it has filed a supplement with the U.S. SEC in order to offer and sell up to a maximum of 3,500,000 shares of its common stock from time to time through an “at-the-market” equity offering program.

GameStop states that the company intends to use the proceeds from any sales of its Common Stock under the ATM Offering to further accelerate its transformation as well as for general corporate purposes and further strengthening its balance sheet.

The news release goes on to state that the timing and amount of any sales will be determined “by a variety of factors” considered by the Company.

Stock will be offered on the open market through Jefferies LLC which is serving as the sales agent. Sales may be made at prevailing market prices at the time, so as a result, sales prices may vary.

While this ATM offering dilutes existing shareholders, it is long-term bullish for the stock. 3,500,000 shares represents about 5.0% of the 69.9 million shares outstanding as of March 17. 

For the shelf offering to reach a full $1B, GameStop would sell the 3.5M shares at $285.71/share. If sold at the April 5th, 2021 open price of $171, GameStop would only be able to raise $598,500,000.

 Source: GameStop Form 424B5

The executive overhaul continues as revealed today in a SEC Form 8-K Filing, GameStop’s Chief Merchandising Officer has notified the company of his intent to resign.

Chris R. Homeister had served as Executive Vice President and Chief Merchandising Officer for GameStop, a role he was appointed to in June of 2019.

As Chief Merchandising Officer, Chris was responsible for GameStop’s overall merchandise operations and strategy and all product and visual merchandising functions, including buying, planning, supply chain and logistics, and inventory control efforts.

Prior to joining GameStop, Chris served as President, CEO and a member of the Board of Directors of The Tile Shop, a publicly traded specialty retailer, where he grew the company in terms of product assortment, online and mobile capabilities, store count, employees, revenue and EBITDA.

Earlier in his career, Chris held a number of senior roles at Best Buy, including SVP, Digital Merchandising & Strategic Planning and General Manager and SVP, Entertainment Business Group, where he oversaw the product categories including video games, movies, music, and eReaders and launched Best Buys’ video game trade-in business.

Chris cited diminished responsibilities as the reason for requesting resignation. His employment will be terminated during Q2 2021.

Source: GameStop Corp. SEC Filing