4 million by selling 45 million shares. This news caused the company's shares to surge more than 12% after the market closed.

GameStop has been facing challenges due to customers increasingly turning to e-commerce platforms for purchasing video games and collectibles. The company heavily relies on its brick-and-mortar stores, which have been negatively impacted by the shift in consumer behavior.

Earlier this month, GameStop had revealed its plan for a share sale amid a retail buying frenzy triggered by the return of Keith Gill, also known as "Roaring Kitty," on social media. Gill's bullish stance on the company played a significant role in driving the meme stock rally of 2021.

In an "at-the-market" offering, GameStop sold the shares at the prevailing market price, rather than a pre-determined one. The rally in GameStop's shares, which transformed the company into the symbol of retail mania, began after Gill shared a meme and various video clips from movies. During this period, the stock quadrupled between the end of April and May 14. However, it subsequently gave back around 60% of those gains.

Although GameStop did not disclose the specific price at which the shares were sold, Reuters calculations estimate an average price of $20.74 per share. Currently, GameStop shares are trading at $21.93.

The company stated that it plans to utilize the proceeds from the share sale for general corporate purposes, including acquisitions and investments. This move comes as GameStop projects a decline in first-quarter net sales, with expectations ranging between $872 million and $892 million compared to $1.24 billion in the previous year.

Similar to GameStop, theater chain AMC completed a $250 million "at-the-market" share sale program last week, reflecting the trend of struggling retail companies seeking financial support through such offerings.

As GameStop continues to navigate the changing landscape of the video game industry, the success of its recent share sale provides a welcome boost, allowing the company to pursue strategic opportunities and further adapt to the evolving preferences of consumers.