(Bloomberg) -- GameStop Corp. fell early on Monday after the company said it may sell up to $1 billion worth of additional shares in an at-the-market equity offering program.
Shares of the video game retailer declined more than 15% to $160.96 as of 7:19 a.m. in New York. Jefferies will manage the offering of up to 3.5 million shares, according to a statement, and proceeds will be used to further accelerate its corporate transformation.
The company signed a deal in December with Jefferies to sell as much as $100 million in stock, according to a filing.
As part of a corporate overhaul spearheaded by activist investor and board member Ryan Cohen, GameStop, the company has brought in a number of new executives including a chief growth officer and chief technology officer, adding technology-focused senior executives to its team to move the company away from its brick-and-mortar business.
Read more: GameStop Adds Another Amazon Executive to Team
In a separate statement on Monday, GameStop released preliminary sales results for the first nine weeks of fiscal 2021, where total global sales increased about 11% from the same period a year ago. Total global sales jumped 18% in March after a 5.3% rise in February.
GameStop, based in the Dallas suburbs, has suffered with the video-game industry’s shift to online distribution. With gamers downloading more and more -- or at least ordering software and gear via e-commerce -- there’s less reason to make a trip to a physical store. The company reported disappointing fourth-quarter earnings last month.
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(Updates share price move in the second paragraph and adds more details throughout.)
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