GameStop Investors Feel Some Relief Following 12M Share Dutch Auction Offer

GameStop Corp. GME announced plans to launch a “modified Dutch auction” tender offer to purchase up to 12 million shares of its Class A common stock.

The sale will be $0.001 per share and at a cash purchase price of not greater than $6.00 and not less than $5.20 per share.

A “modified Dutch auction” tender offer allows shareholders to indicate how many shares of common stock and at what price within the range described above they wish to tender their shares.

The tender offer is expected to commence June 11 and to expire at 5:00 p.m. ET.

“We view the purchase of our shares to be financially compelling at this time,” said GameStop CEO George Sherman in a statement.

GameStop shares traded higher by 7 percent to $5.37 Monday morning. Shares traded near $8 as recently as June 4 before selling off following earnings.

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