Shares of GameStop (GME) are up 15% in premarket trading on news that the video game retailer plans to split its stock.
The video game retailer said it will seek stockholder approval at its next shareholder meeting for an increase in the number of Class A common stock from 300 million to 1 billion in order to conduct a stock split in the form of a stock dividend.
It was not clear how much of the increased share count would be used for the stock split. In a regulatory filing, the company said that part of the increase in shares could be used for other purposes, including selling more stock.
And GameStop said that any stock dividend will be contingent on final board approval.
Shares of GameStop skyrocketed in March, rising 35% during the month. GameStop’s stock got a boost in recent weeks after company chairman Ryan Cohen bought an additional 100,000 shares, bringing the activist investor’s ownership of the company to 12%.
Still, GameStop continues to struggle with its plan to pivot from a bricks-and-mortar retailer to an e-commerce company.
Year to date, GameStop’s shares have gained 9% to finish trading in New York yesterday (March 31) at $166.58.
