| Author | Source |
|---|---|
| u/tsevni |
Source of the latest GameStop announcement:Â https://news.gamestop.com/static-files/33c3ed1d-f47e-403f-81f7-9b75d3cf1adc
Apes, it’s important that we read from the source of information before arriving at conclusions and posting to reddit. Remain skeptical, always.
The latest PROSPECTUS SUPPLEMENT states the following:
We previously entered into an Open Market Sale AgreementSM, or Sales Agreement, with Jefferies LLC, or Jefferies, on December 8, 2020, relating to shares of our Class A common stock, par value $0.001 per share, or common stock. In accordance with the terms of the Sales Agreement, we may offer and sell shares of our common stock from time to time through Jefferies, acting as our sales agent. Under this prospectus supplement and the accompanying prospectus, and in accordance with the terms of the Sales Agreement, we may offer and sell shares of our common stock having an aggregate offering price of up to $1,000,000,000 (but in no event more than 3,500,000 shares of our common stock). On December 8, 2020, we filed a prospectus supplement relating to the offer and sale of shares of our common stock under the Sales Agreement having an aggregate offering price of up to $100,000,000. We have not sold any shares of common stock under this previously filed prospectus supplement, which is replaced and superseded in its entirety by this prospectus supplement.
The previous prospectus had no cap on total shares that could be sold, but it does assume that the sale would be roughly 6,116,207 shares for up to $100,000,000. This new prospectus (which replaces the previous one) does, however; cap the total shares that can be sold to 3.5 million shares instead AND does so for up to $1,000,000,000.
As far as I am concerned, they just increased the maxiumum cost of their shares available for sale. Why would they consider possibly $100,000,000 for possibly 6 million shares when they could consider possibly $1,000,000,000 on up to 3.5 million shares instead?
This tells me that they value their shares a LOT more now than they did back at the end of 2020. This is a good sign to me and extremely bullish news.
*Opinions expressed are entirely my own. Do your own research before arriving at conclusions - I could be entirely wrong here. The contents of this post do not constitute financial advice. The contents of this post are for entertainment purposes only. 🚀 🚀 🚀
Edit: Apologies for the typo in the title! Previous prospectus is from December 08, not 2008. 🦧
Edit 2: Thanks to u/leetodai and u/Navigator161 for pointing out the previous prospectus was for an assumed 6 million shares. Feeling even more bullish now.
Edit 3: DFV’s latest tweet seems to corroborate this DD: https://twitter.com/TheRoaringKitty/status/1379071447633698819