The GameStop board approves the stock-sharing plan, the shares increase

Signage is seen at a GameStop in Manhattan, New York, USA, December 7, 2021. REUTERS / Andrew Kelly

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July 6 (Reuters) – GameStop Corp (GME.N) said on Wednesday that its board of directors has approved a four-by-one division of shares, bringing the shares of video game retailer up more than 5 % in the extended negotiation.

The meme stock company in March sought shareholder approval for the division, planning to increase its outstanding Class A common shares to $ 1 billion to $ 300 million in order to make it easier for retail investors to own its shares. . Read more

The division will take the form of a dividend in shares, which will be distributed after the markets close on 21 July.

Shareholders will receive the dividend of three additional shares of the Company’s Class A common shares for each share they hold.

The retailer is pivoting towards e-commerce to boost business after the pandemic crushed the brick and mortar business.

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Report by Chavi Mehta in Bangalore; Edited by Devika Syamnath

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