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GameStop Raises $1.126 Billion From 'At-the-Market' Sale of 5 Million Shares

GameStop said it will use the $1.1 billion in proceeds for "general corporate purposes ... investing in growth initiatives and maintaining a strong balance sheet".

GameStop  (GME) - Get Free Report said Tuesday it sold 5 million of its common shares in an 'at-the-market' offering that raised just over $1.1 billion for the video game retailer.

GameStop said the sale, first unveiled amid its first quarter earnings release on June 9, generated gross proceeds of $1.126 billion which will be used for "general corporate purposes as well as for investing in growth initiatives and maintaining a strong balance sheet."

GameStop shares were marked 7.3% higher in early trading Tuesday to  change hands at $215.50 each following news of the share sale. 

The Grapevine, Texas-based retailer posted an adjusted loss of 45 cents per share for its fiscal first quarter, well inside the Street consensus forecast, and noted that group revenues rose 27.5% to $1.3 billion, as console demand offset a 5% slump in individual game sales. 

Alongside that, however, GameStop revealed it had received a request from the U.S. Securities and Exchange Commission last month for a "voluntary production of documents" linked to an ongoing investigation concerning "trading activity" in its shares and those of other companies.

Data from the website, which tracks real-time mentions on stocks within Reddit's r/wallstreetbets chatroom, indicates that GameStop is the second most-discussed stock among users, up from a previous rank of 5, over the past 24 hours and more than 860 mentions.

Short interest in the shares remains elevated, however, with data from S3 Partners showing just over $2.64 billion in bets against the group, a figure that represents around 11.5 million shares, or 19.8% of the float prior to Tuesday's share sale.