GameStop fell early on Monday after the company said it may sell up to 3.5 million in additional shares an at-the-market equity offering program.

Shares of the video game retailer fell more than 11 per cent to $171 as of 6.13am in New York. Jefferies will manage the offering, 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.

In a separate statement, GameStop also released preliminary sales results for the first nine weeks of fiscal 2021, where total global sales increased about 11 per cent from the same period a year ago. Total global sales jumped 18 per cent in March after a 5.3 per cent rise in February. – Bloomberg