GameStop’s Last Big Day Gains After-Hours Momentum With $ 551 Million Stock Offering

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A $ 551 million stock offering, apes and ants trading together, GameStop hysteria! Shares of the video game retailer become the mother of all memes rose 11.7% on Monday as retailers on social media pushed their case bullish and openly reflected that their battle to squeeze hedge funds Still short on stocks had been joined by traders in South Korea who share their goal of toppling funds and market makers.

But GameStop GME, + 11.74%, was up even higher after the closing bell thanks to a post-market announcement that the company had completed its stock offering “on the market” by selling an additional 3.5 million shares for approximately $ 551 million. It was GameStop’s first day of trading with double-digit gains since March 12, and the after-hours action sent the stock back more than $ 190, a level it hasn’t touched since April 1. The Reddit boards continued to light up Monday with theories that many hedge funds continue to cut GameStop stock and will explode once founder, turned Chewy activist and investor Ryan Cohen takes control of the company’s board. and appoints a new CEO following the announced departure of current CEO George Sherman. The $ 551 million share sale, which GameStop confirmed in a statement “will be used to continue accelerating GameStop’s transformation, as well as for general corporate purposes and further strengthen the company’s balance sheet,” was taken as a signal in the social media that Cohen’s war chest is now bloated just as the company’s debt has been wiped out, making the core job at GameStop more appealing to an executive focused on e-commerce. But the influx of cash mainly fueled more arguments that GameStop is still under massive pressure from shorts that need to be eliminated by the retail army. “I wonder if GME sold those shares to a fund that changed its short selling methods and begged and begged [forgiveness], ”Posted a user on the Reddit r / Superstonk board. Others offered advice on how to trade after hours, while some openly reflected that the help of traders on a South Korean message board calling themselves “Ants” had pushed stocks to the top. Monday. That theory, which was not borne out in stock or option volumes, greatly pleased pro-GameStop Reddit users, who refer to themselves as “apes.” “Ants and apes together are stronger,” wrote one user. “The Axis of the Apes,” claimed another. Even Wall Street analysts were baffled by the effect South Korean traders might have had on stocks. “It’s as good a theory as any today,” offered Wedbush analyst Michael Prachter.