GameStop's shares retreated in pre-market trading on Monday, after the video game retailer said it could sell up to 3.5 million shares, while trying to take advantage of rising prices after a frenzy driven by Reddit. Reuters, the sale of shares would bring the company more than $ 670 million at Thursday's closing price of $ 191.45. The shares rose more than 900% this year and hit $ 482.95, with retail traders betting against Wall Street hedge funds that had sold the shares. GameStop said it would use the proceeds of the stock offering to accelerate the change in its business model for e-commerce, a plan that is being led by the main shareholder and board member, Ryan Cohen. The company said that it has filed the prospectus for the offering of shares on the market with the Securities and Exchange Commission (SEC , US capital market regulator).
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The shares were down 13% to $ 166 in the premarket. Separately, GameStop said global sales for the nine-week period ending April 4 increased by about 11%.
Keith Gill, the investor who became known for the frantic rush to GameStop's shares earlier this year, showed a print on the social network Reddit, where he signs under the nickname “DeepFuckingValue”, in which there is a position of almost 40 million dollars in shares, options and money. According to this publication in the Wall Street Bets group, where almost 10 million users organize their investments in the stock exchange, Gill has a global position of 39.8 million dollars among shares, options and money that he has raised in the meantime ( The investor, who makes videos for Youtube explaining his investments and giving advice to others who want to follow him, was a brokerage agent authorized by FINRA (Financial Industry Regulatory Authority), the regulator of brokerage firms in the United States, at the brokerage MML Investors Services LLC, a company owned by MassMutual, an American insurance company. But it ceased to be in January this year. Just click here if you are already an investor. The post Gamestop retreats after a plan to sell 3.5 million shares first appeared in 1 Billion Financial Education.