Shares of GameStop Corp. [NYSE: GME] is plunging during the pre-market trading session of Monday. The firm’s shares tumbled -16.08% as it lost -30.80 during the pre-market trading session of Monday. The unsatisfactory performance of the firm has shown a negative reaction of investors after the firm has submitted the prospectus supplement with the U.S. SEC.
As per the prospectus, the firm has decided to offer and sell up to 3,500,000 shares of its common stock from time to time through an ATM offering. The firm has disclosed that it is planning to use the profit from the sales of the common stock for general business purposes.
Furthermore, GME is also intending to utilize the profit to speed up its revolution. The sale agent of the firm will be Jefferies LLC through which it will offer the share of common stock.
Preliminary Unaudited Sales Results
Additionally, the firm has also disclosed that the preliminary unaudited sale performance. It has revealed that total international sales rose nearly 11% from the nine-week period completed April 4, 2020. The sale for four-week duration completed February 27, 2021, total international sales rose nearly 5.3% from the four-week period completed February 29, 2020.
Furthermore, the international sales of the firm have soared 18% in March. During the Q1 of fiscal 2020, the firm’s operations around 14 countries were adversely affected due to interim store closures and other administration authorized limitations that caused the limited operating activities.
The sales of the firm are initial and dependent on the successful execution of the month-end and quarter-end closure process and modifications. The firm has not finished its month-end and first-quarter fiscal 2021 close process. There are chances that these values may change.