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GameStop Corporation, an American gaming and consumer electronics retailer, has announced plans to sell up to 3.5 million GME shares following the massive and controversial rally

The firm announced On Monday, it filed a prospectus supplement with the U.S. Securities and Exchange Commission, under which it can offer and sell up to 3.5 million shares of GME stock through a stock offering program offered on the market or ATM. GameStop said total global sales are up nearly 11% over the nine-week period ending April 3, 2021.

GameStop noted that its common stock will be offered through the US multinational independent investment bank Jefferies Group, which will serve as a sales agent. The firm said Jefferies may sell common stock by “any lawful method considered” an ATM offering as defined in Rule 415 (a) (4) of the Securities Act. “Sales can be made at market prices prevailing at the time of sale or at prices related to prevailing market prices,” the company said.

GameStop emphasized that the offering is strongly limited to 3.5 million shares, stating, “In no event will the Company sell more than 3,500,000 shares of common stock under the ATM offering, and total gross proceeds will not exceed $ 1,000,000,000. There will be no sale of common stock in any jurisdiction where this would be illegal. “

The company plans to use the net proceeds from ATM sales to “further accelerate its transformation, as well as for general corporate purposes and to further strengthen its balance sheet.” “The timing and amount of any sales will be determined by a number of factors considered by the company,” added GameStop.

After the announcement, the GME share tumbled according to data from MarketWatch over 14% to $ 164 at time of writing. By launching the ATM offering, GameStop reportedly want to take advantage of the stock price surge as a result of the Reddit-powered short squeeze GME pumped above $ 370 in late January 2021 from $ 20 earlier that month.

As previously reported by Cointelegraph, GameStop’s short squeeze caused serious problems for some trading platforms, such as the crypto-friendly app Robinhood. After suspend GameStop trading in January, Robinhood became the subject of a criminal investigation initiated by the United States Department of Justice and similar investigations by the SEC and the Commodity Futures Trading Commission.

Mike Novogratz, CEO of Galaxy Digital, said GME’s short squeeze has been a great support for crypto, especially for the decentralized financial sector. “It is a revolution that started with people who did not trust the central authority. It’s a call for transparency and fairness, ”Novogratz stated