Benzinga - by Chris Katje, Benzinga Staff Writer.
Shares of video game retailer GameStop Corporation (NYSE:GME) are soaring in after-hours trading Friday, a move that comes after weeks of volatility for meme stocks.
What Happened: On Friday, GameStop announced it has completed its at-the-market equity offering program, which was previously announced.
The company sold 45 million shares under the plan with aggregate gross proceeds of $933.4 million. This would represent a share price of around $20.74 for the offering.
GameStop said it intends to use the net proceeds from the offering for "general corporate purposes, which may include acquisitions and investments."
Related Link: GameStop Shares Fall On Offering: ‘One Shouldn’t Buy Stocks Just Because They Are Going Up,’ Fund Manager Says
Why It's Important: GameStop shares fell when they announced the planned at-the-market offering and announced preliminary first-quarter financial results.
The increase in the stock price after hours on Friday could indicate that investors perceive the dilution as complete and believe the shares are undervalued at their current sale price.
The return and subsequent exit of Roaring Kitty, a key figure in the GameStop short squeeze saga of 2021, has made shares of the video game company highly volatile.
GME Price Action: GameStop shares are up 16% to $22.14 in after-hours trading Friday after closing at $19.00. Shares have traded between $9.95 and $64.83 over the last 52 weeks.
Read Next: RFK Jr. Announces GameStop Stock Purchase On X Account: ‘My Administration Will Support The Ape Retail Rebellion’
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