GameStop (GME) plans stock dividend & split pending shareholder vote at annual meeting
Power to the Players!
GameStop has filed a Form 8-K with the Securities and Exchange Commission (SEC) laying out plans for a stock split and dividend pending a shareholder vote.
Here's the full statement from GameStop's Form 8-K filing with the SEC:
Item 8.01 Other Events
On March 31, 2022, GameStop Corp. (the “Company” or “GameStop”) announced its plan to request stockholder approval at the upcoming 2022 Annual Meeting of Stockholders (the “Annual Meeting”) for an increase in the number of authorized shares of Class A common stock from 300,000,000 to 1,000,000,000 through an amendment to the Company’s Third Amended and Restated Certificate of Incorporation (the “Charter Amendment”) in order to implement a stock split of the Company’s Class A common stock in the form of a stock dividend and provide flexibility for future corporate needs. GameStop also intends to request stockholder approval at the Annual Meeting for a new incentive plan (the “2022 Equity Plan”) to support future compensatory equity issuances. If the 2022 Equity Plan is approved by stockholders, it will replace the current GameStop Corp. 2019 Incentive Plan (the “2019 Plan”), and 8,000,000 shares of the Company’s Class A common stock, plus any shares subject to the 2019 Plan that expire, are forfeited, cancelled, terminated or settled in cash after the 2022 Plan is effective, will be available for issuance under the 2022 Plan. GameStop’s Board of Directors has approved both stockholder proposals, but the stock dividend will be contingent on final Board approval.
The Company’s definitive proxy statement relating to the Annual Meeting will include additional details regarding the Charter Amendment and the 2022 Equity Plan, as well as the record date, date and location of the Annual Meeting.
Today's news has caused a violent jump in GameStop (GME) shares in the after-hours session. The stock hit as high as $204/share on the news of this stock split. The languaged used in the Form 8-K filing with the SEC seems to imply that GameStop may be looking at issuing more shares to raise funding, but also are hoping to increase liquidity for all shareholders. GameStop's stock will also be cheaper per share following the split, but many of these details will come following the shareholder vote at the Annual Meeting.
As always, keep it locked onto Shacknews for all of the GameStop news as it breaks. You can even load up our GME topic page to see all of our coverage in chronological order and in one place.
This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.
Full Disclosure:
At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, or his company Virtue LLC had the following positions:
Long GameStop via GME shares (partially-hedged with out-of-the-money put options)
Long GameStop via GME call options
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