Shares of videogame retailer GameStop Corp. (GME) are gaining more than 12 percent or $2.19 in Monday’s morning trade at $19.88.
Monday, GameStop said it has entered into an agreement with activist investor RC Ventures LLC that will expand the company’s board of directors from 10 members to 13. RC Ventures, which is one of GameStop’s largest stockholders, is managed by Ryan Cohen.
The agreement provides for the immediate appointment of three new directors – Alan Attal, Ryan Cohen and Jim Grube – who will also stand for election on GameStop’s nine-member slate at the company’s 2021 annual meeting of stockholders, which is expected to take place in June 2021.
Separately, GameStop reported worldwide sales results for the nine-week holiday period ended January 2, 2021, reflecting a 4.8 percent increase in comparable store sales and a 309 percent increase in e-commerce sales. However, total sales for the period declined 3.1 percent, reflecting an 11 percent decrease in the company’s store base due to its planned de-densification strategy, temporary store closures and lower store traffic due to the significant impacts of the COVID-19 pandemic.
GameStop has traded in a range of $2.57 to $22.35 in the past 52 weeks.
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