Jim Stop Shares rose in extended trading on Thursday after the company said it plans to implement a stock split.
The video game retailer said it will seek shareholder approval at its upcoming shareholder meeting to increase the number of Class A common shares from 300,000,000 to 1,000,000,000,000 for a partial stock split in the form of a stock dividend.
Mimi’s shares jumped 17% in after-hours trading on Thursday after the announcement.
It was not clear how much of an increase in the number of shares would be used to split the shares. GameStop has included a line in a regulatory filing suggesting that part of the stock increase could be used at some point for other means, possibly selling more stock.
The company said the authorization would also be used to “provide flexibility for the companies’ future needs.”
GameStop said the stock dividend will be conditional on final board approval.
GameStop shares have been in a turbulent state this month, up 35%, as enthusiastic retail investors sided with their favorite meme. The stock got a boost earlier this month when Chairman Ryan Cohen bought an additional 100,000 shares, Raising the ownership of the active investor to 11.9%.
However, investors and analysts hoping for a fundamental turnaround at GameStop have so far been disappointed, as the company has revealed few details about the e-commerce transformation.
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