GameStop To Sell $1 Billion Shares After Reddit Boom, Shares Dip

GameStop shares fell Monday after a report that the company is looking to increase the value of new stock it may sell from $1 million to $1 billion.

According to Reuters’ report, GameStop Corp. shares fell 13.9 percent on Monday, after the SEC filing was made public. Earlier this year, GameStop experienced a stock boom thanks to a Reddit-fueled buying free for all. The company had so far failed to take advantage. The hesitation to act was attributed to security laws requiring the gaming retailer to disclose its latest financial information.

This past December, the gaming retailer had registered with the U.S. Securities and Exchange Commission to sell $100 million worth of stock through an at-the-market offering but failed to act on it. The prospectus for the new $1 billion ATM offering filed with the SEC replaces the previously filed $100 million offerings. The ATM program allows GameStop to sell stock over an extended time period.