GameStop Corp. (GME) announced its expansion of North America Fulfillment and elimination of long-term debt after which the GME stock happened to be green in today’s pre-market on May 3, 2021, after bearing the fall in the previous trading session. GME stock saw a push of 1.30% to reach $175.85 a share at the time of this writing. GME stock went down by 1.48% at the previous closing. Let’s discuss the recent events of GME stock in detail.
Expansion of Fulfillment Network:
GME stock contracted for a 700,000 square foot fulfillment center in York, Pennsylvania in order to expand its North American fulfillment network to support transformation. This facility will support eCommerce and fulfillment needs and is expected to be operational by the fourth quarter of the year 2021. Management of GME stock is optimistic that its fulfillment center in York, Pennsylvania will pave the way for the growth of product offering of GME and accelerate the shipping process across the east coast.
Elimination of long-term debt:
GME stock today also announced its elimination from long-term debt according to which GME stock has completed its voluntary early redemption of $216.4 million of its 10.0% Senior Notes due 2023. This early redemption has covered all the principal amount of outstanding 10% senior notes which means that the GME stock has weaned itself from long-term depth. The freedom from the long-term debt will help GameStop stock to support future transformations and will strengthen the GME’s balance sheet.
Completion of At-The-Market Equity Offering:
On April 26, 2021, GME stock competed for its previously announced at-the-market equity offering program(ATM) pursuant to which GME stock sold 3.5 million shares of its common stock via the ATM offering. The aggregate proceeds resulting from this offering were totaled approximately $551 million without deducting the commissions and offering related expenses.Net proceeds will be used in GameStop’s transformation along with general corporate purposes as well as further strengthening of its balance sheet.
Investors are responding to the recent couple of news related to GameStop’s expansion of North America Fulfillment and elimination of its long-term debt. GameStop is now well-positioned for its transformation as well as to strengthen its balance sheet. In a nutshell, GME stock can be a good bet for investors in the long run.