Movie Gallery Lower After Registering Shares

Movie Gallery

(MOVI)

said it has filed a registration statement with the

Securities and Exchange Commission

for an offering of 8,250,000 shares.

The video rental chain is offering up 3,900,000 shares, while individual stockholders are offering the other 4,350,000. Of those private shares, 3 million are from the company's former president and 1 million are from the former chief executive, with the option of another 1,237,500 shares to cover over-allotments.

The company plans to use the proceeds for repayment of debt, working capital, new store openings, acquisitions, and general corporate purposes.

Shares of Movie Gallery were recently trading down 6.41% to $16.70 on the news after closing at $18.12 Wednesday on the

Nasdaq

.