Zhitong Finance APP learnedfroggervideogame, given the Game Station (GMEfroggervideogame.US) announced that it had received nearly US$1 billion in funding from a stock sale plan. The retail favorite company rose sharply by 25% after hours, but as of press time, the increase narrowed to 13.1%.
According to a statement on Friday, the video game retailer used a round of deals earlier this month to sell 4.5 billion U.S. dollars.froggervideogame,5 million shares, raising approximately $933 million. The stock jumped 25% after hours to $23.80, but was still well below its peak of nearly $65 hit on May 14.
The stock is following the same trend as AMC Theater (AMC.US). Earlier this month, Keith Gill posted on X, triggering another wave of "meme shares".froggervideogameHe became famous in 2021 by wooing a game station deal on Reddit. At that time, both stocks experienced a surge in stock prices without updates on fundamentals. AMC rose in line with Game Station in late trading, jumping 8.06% to $5.23. As of press time, AMC rose 1.03% to $4.89.
Game Station announced a "floor trading plan" earlier this month, which allows banks to issue shares and sell them. The proceeds will replenish the company's cash reserves, which were approximately US$1.1 billion before financing. The company intends to use the funds for general corporate purposes, which may include acquisition and investment activities.
The video game retailer's basic business is struggling, and most players choose to download new games rather than go to a physical store. As part of a strategy to sell shares, the company has disclosed its operations in the past few months. Sales fell short of expectations due to a focus on cost cutting.